#1
What does the term 'premium' refer to in an insurance policy?
The total coverage amount
The amount paid by the policyholder to the insurer
The policy duration
The policyholder's age
#2
Which type of insurance provides coverage for damage to the insured's own vehicle?
Health insurance
Property insurance
Collision insurance
Liability insurance
#3
What is the 'grace period' in an insurance policy?
The time when coverage is temporarily suspended
The period during which the policyholder can renew the policy without a lapse in coverage
The waiting time before a claim is processed
The time limit for filing a claim
#4
In health insurance, what does 'co-payment' refer to?
The total amount the insured pays for covered healthcare services
A fixed amount the insured pays for each healthcare service or prescription
The percentage of covered expenses shared by the insured and the insurer
The waiting period before health coverage begins
#5
What does the term 'renewal premium' mean in insurance?
The initial premium paid at the time of policy issuance
The premium paid to extend or continue coverage for another policy period
The premium amount that remains constant throughout the policy term
The premium refunded to the policyholder upon policy cancellation
#6
Which of the following is a characteristic of a term life insurance policy?
Provides coverage for the entire life of the insured
Builds cash value over time
Covers specific periods, such as 10, 20, or 30 years
Primarily designed for investment purposes
#7
What is the 'deductible' in an insurance policy?
The amount the insurer pays to the policyholder
The maximum coverage amount
The initial amount the policyholder must pay before the insurer covers the rest
The policy cancellation fee
#8
What is 'coinsurance' in the context of health insurance?
The amount the policyholder pays out-of-pocket before coverage begins
A percentage of covered expenses shared by the insured and the insurer
The maximum amount the insurer will pay for a claim
Coverage for alternative medicine treatments
#9
What does 'waiting period' mean in disability insurance?
The time between policy issuance and the first premium payment
The time a policyholder must wait before receiving benefits after a covered event occurs
The time during which the policy cannot be canceled
The period when the policyholder cannot make any changes to the policy
#10
What is 'exclusion' in insurance policy language?
A provision that limits coverage for certain risks or conditions
The policy termination clause
The maximum payout limit
The discount applied to premiums
#11
In property insurance, what does 'actual cash value' represent?
The replacement cost of the insured property
The original purchase price of the property
The property's value at the time of loss, considering depreciation
The insured's liability limit
#12
What is the purpose of the 'elimination period' in disability insurance?
The period during which the policyholder cannot make any changes to the policy
The time a policyholder must wait before disability benefits begin
The period when coverage is temporarily suspended
The time limit for filing a disability claim
#13
In insurance, what does 'underwriting' involve?
Writing policies in clear language
Assessing risk and determining premium rates
Handling claims and settlements
Marketing insurance products
#14
What is the purpose of an 'endorsement' in an insurance policy?
Cancellation of the policy
Adding or modifying coverage
Claim investigation
Premium refund process
#15
What is the purpose of 'reinsurance' in the insurance industry?
Providing coverage for high-risk individuals
Transferring a portion of risk to another insurer
Determining policy premiums
Canceling existing policies
#16
In life insurance, what does 'cash surrender value' represent?
The amount paid to the beneficiary upon the insured's death
The amount the policyholder receives if they surrender the policy before maturity
The premium payment amount
The interest earned on the policy
#17
What is 'moral hazard' in the context of insurance?
The intentional causing of a loss to claim insurance benefits
A condition that increases the likelihood of a loss
The process of evaluating risk for underwriting
The legal obligation to pay insurance premiums
#18
What is 'umbrella insurance' designed to cover?
Specific high-value items in a home
Travel-related risks
Catastrophic events that exceed the limits of other policies
Pet-related liabilities
#19
What is the 'war clause' in insurance policies?
Exclusion of coverage for losses related to war or warlike actions
A provision that limits coverage for specific perils
The waiting time before a claim is processed
A discount applied to premiums for military personnel