Insurance Coverage and Policies Quiz

Property insurance does not provide coverage for life, but for property damage or loss.

Premium is the payment made by the insured to the insurer in exchange for insurance coverage.

Collision insurance provides coverage for damage to a vehicle resulting from a collision with another object, such as another vehicle or a stationary object.

Standard health insurance policies often do not cover routine dental check-ups, which may require separate dental insurance.

Liability insurance provides coverage for legal expenses and damages resulting from lawsuits brought against the insured.

Term life insurance provides coverage for a specific period, often with lower premiums compared to permanent life insurance.

Cash value is the portion of the premium allocated to a savings account in permanent life insurance policies.

Deductible is the initial amount of a covered loss that the insured must pay before the insurance company begins to contribute.

Flooding is usually excluded from standard homeowners insurance policies and requires separate flood insurance.

An endorsement in insurance allows for changes to the terms, conditions, or coverage of the policy as needed.

Underwriting involves evaluating risks associated with insuring a person or entity and deciding on coverage terms and premiums.

Coinsurance is the portion of medical costs that the insured must pay after meeting the deductible, usually as a percentage.

Reinsurance is a practice where an insurer transfers some of its risk to another insurer to reduce its exposure to large losses.

Exclusions are specific risks or conditions listed in an insurance policy for which coverage is not provided.

Subrogation is the insurer's right to pursue reimbursement from a third party responsible for causing a loss covered by the insurance policy.