#1
What does 'Deductible' refer to in insurance?
The amount an insured person pays out of pocket before the insurance coverage kicks in.
ExplanationInitial out-of-pocket cost before insurance coverage starts.
#2
Which of the following is NOT a type of life insurance?
Accident insurance
ExplanationExcluded from life insurance types.
#3
What is 'term' in relation to insurance policies?
The duration of the insurance coverage provided by the policy.
ExplanationDuration of insurance coverage.
#4
Which of the following is NOT typically covered by a standard homeowners insurance policy?
Flood damage to the home.
ExplanationExclusion from standard homeowners coverage.
#5
What is 'policy limit' in insurance?
The maximum amount of coverage provided by the insurance policy.
ExplanationMaximum coverage amount specified by the policy.
#6
What does 'COBRA' stand for in the context of health insurance?
Consolidated Omnibus Budget Reconciliation Act
ExplanationAcronym for health insurance regulation.
#7
Which of the following is a characteristic of a 'riders' in an insurance policy?
They are optional additions to a policy, providing additional coverage for specific situations.
ExplanationOptional policy additions for specific coverage.
#8
What is 'cash value' in life insurance?
The amount of money available to the policyholder as a loan or surrender value.
ExplanationAccessible funds within a life insurance policy.
#9
In auto insurance, what does 'collision coverage' typically cover?
Damage to your vehicle caused by a collision with another vehicle or object.
ExplanationCoverage for vehicle damage from collisions.
#10
What is 'coinsurance' in health insurance?
A percentage of covered medical expenses that the insured is responsible for paying after meeting the deductible.
ExplanationPercentage of medical costs covered by the insured.
#11
What is 'underwriting' in insurance?
The process of determining the level of risk a potential insured represents.
ExplanationRisk assessment process for insurance applicants.
#12
What is the purpose of an 'exclusion' in an insurance policy?
To limit the coverage provided by the policy.
ExplanationRestriction on coverage within the policy.
#13
In property insurance, what does 'actual cash value' refer to?
The current market value of the property without depreciation.
ExplanationMarket value of property minus depreciation.
#14
What does 'subrogation' mean in the context of insurance?
The legal right of an insurance company to pursue a third party for damages paid to the insured.
ExplanationInsurance company's legal pursuit of damages from third parties.
#15
What is 'underinsurance' in property insurance?
The situation where an insurance policy provides less coverage than is needed to fully cover the losses.
ExplanationInsufficient coverage for property losses.