#1
What does the term 'premium' refer to in insurance?
The amount of money paid by the insured to the insurer
ExplanationPayment by insured to insurer
#2
Which type of insurance typically covers damage to your own vehicle in an accident?
Auto insurance
ExplanationCovers damage to own vehicle
#3
What is the purpose of a deductible in insurance?
To limit the total payout by the insurance company
ExplanationLimit total payout
#4
Which type of insurance provides coverage for damage to someone else's property or injuries caused by you?
Liability insurance
ExplanationCoverage for others' damages/injuries
#5
What is 'term life insurance'?
A type of insurance that covers a specific period of time
ExplanationInsurance for specific duration
#6
Which type of insurance provides coverage for damage to your property caused by fire, theft, or vandalism?
Homeowners insurance
ExplanationCoverage for property damage
#7
What is 'coinsurance' in health insurance?
The percentage of costs you share with your insurance company after you've met your deductible
ExplanationCost-sharing after deductible
#8
What does 'underwriting' mean in the context of insurance?
The process of deciding whether to insure someone and what terms to offer
ExplanationAssessing and setting terms
#9
What does 'exclusion' mean in an insurance policy?
A condition that limits coverage for certain risks
ExplanationLimits coverage for specific risks
#10
What is the 'grace period' in insurance?
The period after the due date of the premium when coverage remains in force
ExplanationPeriod after premium due date
#11
What does 'policyholder' refer to in insurance?
The person who owns the insurance policy
ExplanationOwner of insurance policy
#12
What is 'cash value' in a life insurance policy?
The total premiums paid into the policy minus expenses and fees
ExplanationTotal premiums minus expenses
#13
In property insurance, what is 'actual cash value'?
The value of property after accounting for depreciation
ExplanationProperty value after depreciation
#14
What is 'reinsurance' in the insurance industry?
The practice of transferring portions of risk portfolios to other parties
ExplanationTransferring risk portions
#15
What is 'risk management' in insurance?
The process of identifying and assessing potential risks
ExplanationIdentifying and assessing risks
#16
What is 'moral hazard' in insurance?
The risk that the insured will intentionally cause a loss to collect insurance proceeds
ExplanationRisk of intentional loss-causing
#17
What does 'indemnity' mean in insurance?
A payment made to compensate for a loss or damage
ExplanationPayment for loss/damage compensation