Insurance Fundamentals and Industry Practices Quiz

Home insurance covers damage to property caused by fire.

'Premium' refers to the amount of money an insured person pays to the insurance company for coverage.

A house fire is an example of a peril in insurance.

'Renewal' in the context of insurance policies is the process of extending an existing policy for another term.

'Exclusion' in an insurance policy is a provision that limits coverage for certain risks.

Reinsurance is the process of transferring some of the risk assumed by an insurer to another insurer.

Property insurance is not a type of life insurance.

'Underwriting' is the process of evaluating risk and determining the cost of insurance.

Whole life insurance builds cash value over time.

'Liability insurance' typically covers injuries or damages caused to others by the insured person.

A 'deductible' is the portion of a claim that an insured person must pay before the insurance company covers the rest.

'Endorsement' or 'rider' in insurance refers to an amendment or addition to an insurance policy.

'Subrogation' in insurance is the legal right of an insurer to pursue a third party that caused an insurance loss.

'Risk management' in the context of insurance is the process of reducing the likelihood of an insured event occurring.

'Loss ratio' in insurance is the ratio of premiums collected to claims paid.