#1
What does the term 'premium' refer to in insurance?
The total amount of money paid by the insured to the insurer
ExplanationTotal payment by insured to insurer
#2
Which type of insurance provides coverage for damage to property caused by fire, theft, or other perils?
Property insurance
ExplanationCoverage for property damage
#3
What is 'policyholder' in insurance terminology?
An individual or entity that owns an insurance policy
ExplanationOwner of insurance policy
#4
What does 'term life insurance' provide coverage for?
A specific period of time
ExplanationCoverage for a specific time period
#5
What is a 'rider' in insurance terminology?
An additional provision or amendment to an insurance policy
ExplanationAdditional policy provision
#6
What is the main purpose of reinsurance in the insurance industry?
To reduce the risk exposure of primary insurers
ExplanationRisk reduction for primary insurers
#7
What is 'cash value' in life insurance?
The accumulated savings component of a permanent life insurance policy
ExplanationAccumulated savings in life insurance
#8
What does 'co-insurance' mean in health insurance?
The insured shares the cost of covered services with the insurer
ExplanationShared cost of covered services
#9
What is 'excess' or 'deductible' in insurance?
The portion of the loss paid by the insured before the insurer starts paying
ExplanationInitial portion paid by insured
#10
What is 'actuary' in the insurance industry?
An individual who assesses and manages risk using mathematics and statistics
ExplanationRisk assessor using math and statistics
#11
What is 'underwriting' in the context of insurance?
The process of investigating and evaluating risks before issuing insurance policies
ExplanationRisk evaluation before policy issuance
#12
What is 'moral hazard' in insurance?
The tendency for insured individuals to take more risks because they have insurance
ExplanationIncreased risk-taking due to insurance
#13
What does 'subrogation' refer to in insurance?
The right of the insurer to pursue legal action against a third party responsible for the loss
ExplanationInsurer's right to pursue legal action
#14
What is 'loss ratio' in insurance?
The ratio of premiums earned to claims paid
ExplanationRatio of earned premiums to claims
#15
What does 'endorsement' mean in insurance?
An additional provision or amendment to an insurance policy
ExplanationAdditional policy provision
#16
What is 'catastrophe insurance'?
Insurance specifically designed to cover losses from natural disasters
ExplanationCoverage for natural disaster losses