#1
Which of the following is a type of insurance that covers damage to property, such as homes or cars?
Property insurance
ExplanationCovers damage to property like homes or cars.
#2
What does 'premium' refer to in an insurance policy?
The amount paid by the insured party to the insurer for coverage
ExplanationThe payment made for insurance coverage.
#3
Which of the following is a characteristic of a term life insurance policy?
Provides coverage for a specific period of time
ExplanationCoverage for a set duration.
#4
What is 'coinsurance' in health insurance?
The percentage of medical expenses covered by the insurer
ExplanationPercentage of medical costs covered.
#5
What is 'policyholder' in the context of insurance?
The person or entity that owns the insurance policy
ExplanationOwner of the insurance policy.
#6
Which of the following is NOT a type of property insurance?
Liability insurance
ExplanationLiability insurance isn't for property.
#7
Which of the following is NOT a common type of life insurance?
Property insurance
ExplanationNot a type of life insurance; it's for property.
#8
In insurance terms, what does 'deductible' refer to?
The portion of the claim that the insured party must pay before the insurer covers the rest
ExplanationAmount the insured pays before insurer covers the claim.
#9
Which of the following is NOT a factor that typically affects insurance premiums?
Religion
ExplanationReligion isn't a factor in setting premiums.
#10
What is 'exclusion' in an insurance policy?
A specific risk or condition not covered by the policy
ExplanationRisk or condition not covered by the policy.
#11
What does 'endorsement' mean in insurance?
A written amendment to an insurance policy that adds or removes coverage
ExplanationWritten change to policy coverage.
#12
Which of the following is NOT typically covered by a standard homeowners insurance policy?
Flood damage
ExplanationFlood damage isn't usually covered.
#13
What is 'underwriting' in the context of insurance?
The process of assessing risk and determining premiums
ExplanationAssessing risk and setting premiums.
#14
What is 'reinsurance' in the insurance industry?
When an insurer transfers some of its risk to another insurer
ExplanationInsurer transferring risk to another.
#15
What is 'cash surrender value' in life insurance?
The amount of cash value that the insured party can receive upon cancellation of the policy
ExplanationCash value upon policy cancellation.
#16
What is 'annuitization' in retirement planning?
The process of converting a lump sum into a series of payments
ExplanationConversion of lump sum into periodic payments.
#17
What is 'catastrophic coverage' in health insurance?
Coverage for serious medical expenses after a certain threshold is met
ExplanationCoverage for major medical expenses.