#1
Which type of insurance provides coverage for damage to property?
Property insurance
ExplanationProvides coverage for damage to property.
#2
Which of the following is NOT a type of life insurance?
Property insurance
ExplanationProperty insurance is not a type of life insurance.
#3
What does the term 'premium' refer to in insurance?
The amount paid for insurance coverage
ExplanationRefers to the payment made for insurance coverage.
#4
What is the purpose of an 'insurance claim'?
To request compensation for covered losses
ExplanationRequests compensation for covered losses.
#5
Which of the following is an example of liability insurance?
Professional liability insurance
ExplanationCovers legal obligations resulting from negligence or harm.
#6
Which type of insurance provides coverage for medical expenses resulting from accidents or illnesses?
Health insurance
ExplanationCovers medical expenses from accidents or illnesses.
#7
What is the purpose of a deductible in an insurance policy?
To decrease the premium cost
ExplanationReduces the premium cost by sharing the risk with the insured.
#8
What does the term 'underwriting' refer to in insurance?
Assessing risk
ExplanationRefers to assessing risk to determine insurability and premiums.
#9
In insurance, what does 'policyholder' mean?
The person receiving insurance coverage
ExplanationThe individual who receives insurance coverage.
#10
What is the purpose of a 'beneficiary' in a life insurance policy?
To receive the insurance payout upon the insured's death
ExplanationDesignated to receive the insurance payout upon death of the insured.
#11
Which of the following is a characteristic of term life insurance?
Covers the insured for a specific time period
ExplanationProvides coverage for a specified time period.
#12
What does the term 'co-payment' mean in health insurance?
The fixed amount paid by the insured for a medical service
ExplanationA fixed amount paid by the insured for medical services.
#13
What is a 'rider' in an insurance policy?
An additional coverage option
ExplanationAn optional provision providing additional coverage.
#14
In property insurance, what does 'actual cash value' refer to?
The depreciated value of the property
ExplanationRefers to the property's value considering depreciation.
#15
What is 'cash surrender value' in a life insurance policy?
The amount the policyholder receives upon surrendering the policy
ExplanationThe sum paid to the policyholder upon surrendering the policy.
#16
What is 'reinsurance' in the insurance industry?
The transfer of risk from one insurer to another
ExplanationTransfer of risk from one insurer to another.