#1
Which of the following is a type of insurance that provides coverage for a specific period of time?
Term life insurance
ExplanationCoverage for a set duration of time.
#2
What does the term 'premium' refer to in insurance?
The amount the insured pays for insurance coverage
ExplanationCost paid by the insured for coverage.
#3
In insurance, what is meant by 'policyholder'?
The person or entity who owns the insurance policy
ExplanationOwner of the insurance policy.
#4
In insurance, what does the term 'deductible' mean?
The amount the insured pays out-of-pocket before the insurer covers the rest
ExplanationInitial amount paid by the insured before coverage kicks in.
#5
Which of the following types of insurance provides coverage for damage to your own vehicle caused by collision with another object or vehicle?
Collision insurance
ExplanationProtection for your vehicle in collision scenarios.
#6
What does 'underwriting' mean in the context of insurance?
The process of evaluating and assuming risk
ExplanationRisk assessment and assumption process.
#7
Which of the following is a characteristic of a 'rider' in insurance?
It provides additional coverage to the policy
ExplanationAdditional coverage feature for a policy.
#8
Which type of insurance coverage typically protects against lawsuits for bodily injury or property damage caused by the policyholder?
Casualty insurance
ExplanationProtection against injury or property damage lawsuits.
#9
What is the purpose of reinsurance in the insurance industry?
To transfer a portion of risk from the primary insurer to another insurer
ExplanationShifting risk from one insurer to another.
#10
What is the purpose of an insurance 'endorsement'?
To change or modify the terms of an insurance policy
ExplanationModification or alteration of policy terms.
#11
In insurance terminology, what does the acronym 'ACV' stand for?
Actual Cash Value
ExplanationReal value of an insured item.
#12
What is 'annuity' in the context of insurance?
A type of investment product offered by insurance companies
ExplanationInvestment product with periodic payments.
#13
What does 'actuary' do in the insurance industry?
Evaluates and manages risks
ExplanationRisk evaluation and management.