Insurance Fundamentals and Regulations Quiz

Coverage for damage to the insured's own vehicle in accidents.

Endorsement is a modification or addition to an insurance policy.

Coinsurance involves sharing costs between insured and insurer.

NFIP offers flood insurance for property owners and renters.

A rider is an additional provision or coverage added to an insurance policy.

Underwriting involves evaluating risk and setting appropriate premiums.

NAIC is the regulatory body overseeing insurance companies in the US.

Grace period allows time for premium payment after the due date.

Risk pooling combines similar risks to share overall risk.

Declaration page summarizes key details of an insurance policy.

Umbrella insurance provides excess liability coverage.

Incontestability clause prevents contesting the policy after a set period.

Co-payment is a fixed amount paid by the insured for covered services.

Indemnity is compensation for loss or damage in insurance.

Exclusion lists perils or circumstances not covered by the policy.

Deductible is the amount paid by the insured before coverage starts.

Reinsurance is transferring risk to another insurance company.

Subrogation is the insurer stepping into the insured's shoes post-settlement.

Insurance adjusters investigate and assess claim values.

Insurance regulation safeguards policyholder interests and insurer stability.

Waiver of premium suspends payments if the policyholder is disabled.

Insurance agents sell policies and offer advice to clients.

Moral hazard is the increased risk due to the insured's behavior.

ACV is the current market value of insured property, considering depreciation.

Captive insurance is provided by a company for its own risks through a subsidiary.