#1
Which type of insurance provides coverage for damage or loss to your home and its contents?
Homeowners insurance
ExplanationCoverage for residential property and belongings.
#2
What does the term 'deductible' refer to in insurance?
The amount of money the insured must pay out of pocket before the insurance company pays the claim
ExplanationOut-of-pocket payment required before claim reimbursement.
#3
What does 'policyholder' refer to in insurance?
The person who owns the insurance policy
ExplanationOwner of the insurance policy.
#4
Which type of insurance provides coverage for damage or loss to goods while they are in transit?
Cargo insurance
ExplanationProtection for goods in transit.
#5
What does 'premium' refer to in insurance?
The cost of the insurance policy paid by the insured to the insurance company
ExplanationCost of the insurance policy paid by the insured.
#6
Which type of insurance provides coverage for damage or loss to a rented dwelling and its contents?
Renters insurance
ExplanationCoverage for rented property and belongings.
#7
Which of the following types of insurance provides coverage for medical expenses and lost wages resulting from an automobile accident?
Auto insurance
ExplanationCoverage for vehicle-related injuries and expenses.
#8
What is 'coinsurance' in health insurance?
An agreement between the insured and insurer to share the costs of covered services
ExplanationShared cost agreement for health services.
#9
Which type of insurance provides coverage for legal expenses resulting from lawsuits?
Liability insurance
ExplanationProtection against legal expenses from lawsuits.
#10
What is 'underwriting' in the context of insurance?
The process of investigating and evaluating the risk of insuring a person or property
ExplanationRisk assessment and evaluation process.
#11
What is 'exclusion' in insurance policies?
A provision that limits coverage for certain risks or conditions
ExplanationLimitation of coverage for specific risks or conditions.
#12
Which of the following is NOT typically covered by a standard homeowners insurance policy?
Flood damage
ExplanationFlood damage is not typically covered.
#13
In property insurance, what does 'actual cash value' typically refer to?
The current market value of the property minus depreciation
ExplanationProperty value considering depreciation.
#14
Which of the following is NOT a factor typically considered by insurance companies when determining premiums?
Education level
ExplanationEducation level is not a typical premium factor.
#15
What is 'reinsurance' in the insurance industry?
An insurance policy that provides coverage to another insurance company
ExplanationInsurance coverage for insurance companies.
#16
Which type of insurance provides coverage for medical expenses and lost wages resulting from a workplace injury?
Workers' compensation insurance
ExplanationCoverage for workplace injury expenses.
#17
What is 'fiduciary liability insurance'?
A policy that protects employers from lawsuits related to employee benefits plans
ExplanationProtection for employers from lawsuits related to employee benefits plans.