#1
Which type of insurance provides coverage for damage to your own vehicle in an accident?
Auto Insurance
ExplanationCoverage for damage to the insured's own vehicle in accidents.
#2
What does the term 'endorsement' mean in the context of insurance?
A modification or addition to an insurance policy
ExplanationEndorsement is a modification or addition to an insurance policy.
#3
In insurance, what is 'coinsurance'?
The sharing of costs between the insured and the insurance company
ExplanationCoinsurance involves sharing costs between insured and insurer.
#4
What is the purpose of the National Flood Insurance Program (NFIP) in the United States?
To provide flood insurance coverage for property owners and renters
ExplanationNFIP offers flood insurance for property owners and renters.
#5
What is the purpose of a 'rider' in insurance?
An additional provision or coverage attached to an insurance policy
ExplanationA rider is an additional provision or coverage added to an insurance policy.
#6
What is the purpose of underwriting in the insurance industry?
Assessing risk and determining premiums
ExplanationUnderwriting involves evaluating risk and setting appropriate premiums.
#7
Which regulatory body oversees insurance companies in the United States?
NAIC (National Association of Insurance Commissioners)
ExplanationNAIC is the regulatory body overseeing insurance companies in the US.
#8
What is the purpose of a grace period in insurance premium payments?
To allow a brief period for premium payment after the due date
ExplanationGrace period allows time for premium payment after the due date.
#9
What does the term 'risk pooling' mean in insurance?
Combining similar risks into a single group to share the overall risk
ExplanationRisk pooling combines similar risks to share overall risk.
#10
What is the purpose of an insurance policy's 'declaration page'?
To provide a summary of key details about the insurance policy
ExplanationDeclaration page summarizes key details of an insurance policy.
#11
What does the term 'deductible' refer to in insurance?
The amount the insured pays before the insurance coverage kicks in
ExplanationDeductible is the amount paid by the insured before coverage starts.
#12
In insurance, what is the purpose of reinsurance?
To transfer a portion of risk to another insurer
ExplanationReinsurance is transferring risk to another insurance company.
#13
What is 'subrogation' in insurance claims?
The process of an insurance company stepping into the shoes of the insured after settling a claim
ExplanationSubrogation is the insurer stepping into the insured's shoes post-settlement.
#14
What is the purpose of an insurance adjuster in the claims process?
To investigate and assess the value of a claim
ExplanationInsurance adjusters investigate and assess claim values.
#15
What is the primary purpose of insurance regulation?
To protect the interests of policyholders and ensure financial stability of insurers
ExplanationInsurance regulation safeguards policyholder interests and insurer stability.