#1
What does a deductible represent in insurance?
The amount the insured must pay out of pocket before the insurance company pays
ExplanationInitial out-of-pocket expense before insurance coverage kicks in
#2
Which type of insurance typically covers damage to your own vehicle in an accident?
Auto insurance
ExplanationCoverage for damage to your own vehicle
#3
What does liability insurance typically cover?
Damage to another person's property
ExplanationProtection against damages to others
#4
What is 'term life insurance'?
Life insurance that covers a specific term or period
ExplanationLife coverage for a set duration
#5
What does 'actual cash value' mean in insurance?
The current value of an insured item, considering depreciation
ExplanationPresent worth accounting for item depreciation
#6
What is 'co-pay' in health insurance?
A fixed amount the insured pays for a healthcare service
ExplanationSet fee for medical services
#7
What is 'umbrella insurance'?
Insurance that provides additional liability coverage beyond the limits of other policies
ExplanationAdditional liability protection beyond standard policies
#8
What is a 'rider' in insurance terminology?
An amendment or addition to an insurance policy
ExplanationAdditional coverage added to a policy
#9
Which of the following factors typically affects your insurance premium?
Your age
ExplanationAge-based determinant of insurance cost
#10
What is 'underwriting' in insurance?
The process of assessing risk and setting premiums
ExplanationRisk evaluation for setting insurance costs
#11
What is the purpose of a 'deductible' in insurance?
To reduce the risk for the insurer
ExplanationRisk mitigation for the insurance provider
#12
What is 'loss of use coverage' in insurance?
Coverage for additional living expenses if your home becomes uninhabitable
ExplanationFinancial support for temporary housing
#13
What is 'actuary' in the insurance industry?
A financial professional who analyzes risks and sets premiums
ExplanationRisk evaluator and premium setter
#14
What is 'whole life insurance'?
Life insurance that covers a lifetime
ExplanationLifetime life insurance coverage
#15
What is 'coinsurance' in the context of health insurance?
The percentage of costs the insured must pay after meeting the deductible
ExplanationShared costs between insurer and insured
#16
What does 'comprehensive coverage' typically include in auto insurance?
Coverage for damage to your own vehicle from non-accident-related incidents
ExplanationProtection for various non-accident damages
#17
What does 'grace period' mean in insurance?
The time allowed to renew an insurance policy after it has lapsed
ExplanationRenewal window after policy expiration
#18
What is 'moral hazard' in insurance?
The possibility of loss due to dishonesty or carelessness
ExplanationRisk increase due to behavior
#19
What is 'waiting period' in insurance?
The time between the start of a policy and when coverage for certain conditions begins
ExplanationDuration before coverage for specific conditions