#1
Which type of insurance provides coverage for medical expenses and hospitalization?
Health insurance
ExplanationCovers medical costs and hospital stays.
#2
What is the 'elimination period' in disability insurance?
The waiting period before disability benefits begin
ExplanationTime before disability benefits become payable.
#3
What does the term 'policyholder' refer to in insurance?
The person or entity who owns the insurance policy
ExplanationOwner of the insurance policy.
#4
What is the 'waiting period' in disability insurance?
The waiting period before disability benefits begin
ExplanationTime before disability benefits become payable.
#5
In insurance terminology, what does 'endorsement' refer to?
A modification or addition to the insurance policy's terms and conditions
ExplanationChange or addition to policy terms.
#6
What is 'sublimit' in insurance coverage?
A limit within an overall policy limit for a specific type of loss
ExplanationLimit within overall policy limit for specific loss.
#7
What is the purpose of a deductible in health insurance?
To share the cost with the insured
ExplanationSpreads financial responsibility between insurer and insured.
#8
In health insurance, what does the term 'co-payment' refer to?
A fixed amount paid by the insured for each healthcare service
ExplanationFixed fee for healthcare services paid by insured.
#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
ExplanationExcludes coverage for existing health issues.
#10
What does the term 'coinsurance' mean in health insurance?
The percentage of covered expenses paid by the insured after meeting the deductible
ExplanationPercentage of expenses paid by insured after deductible.
#11
What is 'underinsurance' in the context of auto insurance?
Insufficient coverage limits in the insurance policy
ExplanationCoverage limits below what is needed.
#12
In life insurance, what is the purpose of a 'rider'?
An additional coverage attached to the main policy
ExplanationExtra coverage added to primary policy.
#13
In auto insurance, what is the purpose of 'comprehensive coverage'?
Coverage for damage to the insured vehicle not caused by a collision
ExplanationProtection for non-collision vehicle damage.
#14
What is the purpose of an 'exclusion' in an insurance policy?
To list conditions or situations not covered by the policy
ExplanationSpecifies what is not covered by the policy.
#15
What is 'underwriting' in the context of insurance?
The process of assessing and accepting risk for insurance coverage
ExplanationAssessment and acceptance of risk for coverage.
#16
What is the primary purpose of health savings accounts (HSAs) in the context of health insurance?
To accumulate tax-advantaged funds for medical expenses
ExplanationTax-advantaged savings for medical costs.
#17
What is 'subrogation' in insurance terminology?
The right of the insurer to pursue a third party to recover costs paid for a claim
ExplanationInsurer's right to recover costs from third party.
#18
In property insurance, what is 'actual cash value'?
The current market value of the insured property
ExplanationCurrent market worth of insured property.
#19
What is 'reinsurance' in the insurance industry?
Insurance purchased by insurance companies to limit their own risk exposure
ExplanationInsurance bought by insurers to manage risk.
#20
What is 'moral hazard' in insurance?
The increased risk of loss due to the insured's behavior
ExplanationGreater risk due to insured's actions.