Insurance Basics and Coverage Types Quiz
Explore insurance fundamentals with this quiz covering purposes, types, and terminology. Test your knowledge now!
#1
What is the primary purpose of insurance?
To make profit for insurance companies
To protect against financial loss
To increase taxes
To provide free services
#2
Which of the following is NOT a common type of insurance coverage?
Health insurance
Life insurance
Pet insurance
Vacation insurance
#3
In life insurance, what does 'premium' refer to?
The total coverage amount
The amount the insurer pays to the insured's beneficiaries
The amount paid by the insured to the insurance company
The waiting period before coverage begins
#4
What does 'exclusion' mean in an insurance policy?
The amount of coverage provided by the policy
The period of time before coverage begins
The circumstances or perils not covered by the policy
The premium amount paid by the insured
#5
What is the purpose of an 'insurance claim'?
To increase insurance premiums
To assess the risk of insuring a person or property
To request compensation for a covered loss or damage
To cancel an insurance policy
#6
What is the 'deductible' in an insurance policy?
The amount the insured person pays before the insurance company pays
The amount the insurance company pays before the insured person pays
The premium paid monthly
The interest rate on the policy
#7
Which type of insurance is designed to cover damage or loss to property?
Health insurance
Auto insurance
Homeowners insurance
Disability insurance
#8
What does 'COBRA' stand for in the context of health insurance?
Consolidated Omnibus Budget Reconciliation Act
Comprehensive Online Benefits and Risk Assessment
Centralized Organization for Benefit Reimbursement and Administration
Corporate Overhead Benefit Recovery Act
#9
Which type of insurance provides coverage for injuries and damages to others in an auto accident?
Comprehensive insurance
Collision insurance
Liability insurance
Uninsured motorist coverage
#10
What is 'term life insurance'?
Life insurance that covers a specific period of time
Life insurance that covers the insured's entire life
Life insurance that pays dividends
Life insurance for individuals with pre-existing conditions
#11
What is 'underwriting' in the context of insurance?
The process of evaluating and determining the risk of insuring a person or property
The process of filing a claim with the insurance company
The process of calculating premiums
The process of canceling an insurance policy
#12
What does 'subrogation' mean in the insurance industry?
The process of negotiating insurance claims
The transfer of rights and recovery from one party to another
The process of evaluating insurance applications
The calculation of insurance premiums
#13
What is 'coinsurance' in health insurance?
The fixed amount the insured pays for each covered service
The percentage of costs the insured pays after reaching the deductible
The agreement between insurer and insured on coverage terms
The maximum amount the insured can pay out of pocket in a year
#14
What is 'risk pooling' in insurance?
The process of dividing risk among policyholders
The transfer of risk from the insurer to the insured
The process of evaluating insurance applications
The calculation of insurance premiums
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