#1
What is a 'deductible' in insurance?
The amount paid by the insured before the insurance company covers the remaining loss
ExplanationInitial payment made by the insured
#2
In insurance terminology, what does the acronym 'ACV' stand for?
Actual Cash Value
ExplanationAbbreviation for current market value
#3
In the context of insurance, what does the term 'indemnity' mean?
Compensating the insured for their losses or damages
ExplanationCompensation for losses or damages
#4
What is 'underwriting' in the context of insurance?
The process of assessing risk and determining coverage eligibility
ExplanationAssessing risk and coverage eligibility
#5
What is the 'exclusion' in an insurance policy?
A provision that limits coverage for certain risks or situations
ExplanationLimitation of coverage for specific risks
#6
What is 'non-renewal' in the context of insurance policies?
The termination of a policy at the end of its term with no option for renewal
ExplanationPolicy termination with no renewal option
#7
In insurance claims, what does the term 'subrogation' refer to?
The process of recovering money from a third party responsible for the loss
ExplanationRecovering losses from responsible third parties
#8
What is 'actual cash value' in the context of insurance claims?
The current market value of damaged property minus depreciation
ExplanationCurrent market value minus depreciation
#9
What is 'loss of use' coverage in an insurance policy?
Coverage for lost income due to a covered peril
ExplanationCompensation for income loss
#10
What is 'moral hazard' in insurance?
A dishonest or careless behavior that increases the likelihood of a loss
ExplanationBehavior increasing risk of loss
#11
What does 'no-fault insurance' mean?
Insurance that provides coverage regardless of who is at fault in an accident
ExplanationCoverage irrespective of fault
#12
What is the primary purpose of the National Flood Insurance Program (NFIP) in the United States?
To offer insurance for flood-related damages
ExplanationProviding flood-related insurance
#13
What is 'coinsurance' in insurance?
A percentage of the covered expenses that the insured must pay
ExplanationPercentage of expenses paid by the insured
#14
What is the role of an insurance adjuster in the claims settlement process?
To investigate and assess the extent of the loss or damage
ExplanationAssessing loss or damage extent
#15
What is 'excess liability' coverage commonly known as?
Umbrella insurance
ExplanationAdditional liability coverage
#16
What is the 'waiting period' in insurance policies typically associated with?
The time before coverage begins for certain benefits, like disability or pre-existing conditions
ExplanationInitial period before coverage
#17
What is 'reinsurance' in the insurance industry?
Insurance for insurance companies
ExplanationInsurance for insurers
#18
What does 'incontestability clause' mean in an insurance policy?
A clause preventing the insurer from contesting the policy after a certain period
ExplanationPreventing contestation after a period
#19
What does 'reservation of rights' mean in insurance claims?
The insurer's statement reserving the right to deny coverage or defend under certain conditions
ExplanationInsurer's right to deny or defend
#20
What does 'residual benefit' refer to in disability insurance?
Partial benefits paid when the insured can work but with reduced income due to a disability
ExplanationPartial benefits for reduced income