#1
Which type of insurance provides coverage for medical expenses and hospitalization?
Life insurance
Auto insurance
Health insurance
Home insurance
#2
What is the 'elimination period' in disability insurance?
The waiting period before disability benefits begin
The period during which coverage is temporarily suspended
The period during which the insured can file a claim
The time limit for receiving disability benefits
#3
What does the term 'policyholder' refer to in insurance?
The insurance company providing coverage
The person or entity who owns the insurance policy
The insurance agent selling the policy
The beneficiary of the insurance policy
#4
What is the 'waiting period' in disability insurance?
The time between filing a claim and receiving benefits
The period during which coverage is temporarily suspended
The time limit for receiving disability benefits
The waiting period before disability benefits begin
#5
In insurance terminology, what does 'endorsement' refer to?
A document that provides evidence of insurance coverage
A formal complaint filed by the insured
A modification or addition to the insurance policy's terms and conditions
A type of insurance fraud
#6
What is 'sublimit' in insurance coverage?
A limit on the total coverage amount for all policyholders
A limit within an overall policy limit for a specific type of loss
A limit on the number of claims an insured can file
A limit on the insurance company's profits
#7
What is the purpose of a deductible in health insurance?
To reduce premium costs
To limit coverage
To share the cost with the insured
To exclude certain conditions
#8
In health insurance, what does the term 'co-payment' refer to?
The initial amount paid by the insured before coverage kicks in
The percentage of covered expenses paid by the insured
The maximum amount the insured must pay out of pocket
A fixed amount paid by the insured for each healthcare service
#9
In health insurance, what is the purpose of a 'pre-existing condition' clause?
To exclude coverage for any illness or injury present before the policy's effective date
To provide coverage for chronic conditions only
To limit coverage for hereditary conditions
To determine eligibility for premium discounts
#10
What does the term 'coinsurance' mean in health insurance?
A fixed amount paid by the insured for each healthcare service
The percentage of covered expenses paid by the insured after meeting the deductible
The maximum amount the insured must pay out of pocket
A discount offered by insurance companies
#11
What is 'underinsurance' in the context of auto insurance?
Insufficient coverage limits in the insurance policy
Overestimating the value of insured vehicles
A type of coverage for stolen vehicles
Coverage for damage caused by natural disasters
#12
In life insurance, what is the purpose of a 'rider'?
A type of insurance policy
An additional coverage attached to the main policy
The person who assesses risk for the insurer
The amount paid by the insured before the policy takes effect
#13
In auto insurance, what is the purpose of 'comprehensive coverage'?
Coverage for bodily injury liability
Coverage for damage to the insured vehicle caused by a collision
Coverage for damage to the insured vehicle not caused by a collision
Coverage for damage caused by the insured vehicle to other people's property
#14
What is the purpose of an 'exclusion' in an insurance policy?
To specify covered perils
To limit the duration of coverage
To list conditions or situations not covered by the policy
To increase premium costs
#15
What is 'underwriting' in the context of insurance?
The process of assessing and accepting risk for insurance coverage
The calculation of premium rates
The determination of claim settlements
The marketing and promotion of insurance products
#16
What is the primary purpose of health savings accounts (HSAs) in the context of health insurance?
To provide life insurance coverage
To accumulate tax-advantaged funds for medical expenses
To offer disability insurance
To cover dental and vision care expenses
#17
What is 'subrogation' in insurance terminology?
The process of determining policy premiums
The transfer of policy ownership
The right of the insurer to pursue a third party to recover costs paid for a claim
The calculation of policy reserves
#18
In property insurance, what is 'actual cash value'?
The replacement cost of the insured property
The current market value of the insured property
The cost of rebuilding the insured property
The deductible amount applied to the claim
#19
What is 'reinsurance' in the insurance industry?
Insurance coverage for high-risk individuals
Insurance purchased by insurance companies to limit their own risk exposure
The process of canceling an insurance policy
A type of insurance for rare and unusual events
#20
What is 'moral hazard' in insurance?
The intentional exaggeration of a claim by the insured
The increased risk of loss due to the insured's behavior
A type of insurance fraud
The process of evaluating risk for insurance coverage