Insurance Policy Features and Considerations Quiz
Test your knowledge on insurance with questions covering term life, deductibles, cash value, underwriting, and more. Learn key concepts!
#1
Which of the following is a characteristic of term life insurance?
Builds cash value over time
Covers the insured for a specific period
Provides lifelong coverage
Requires a medical exam for approval
#2
What does 'co-insurance' mean in an insurance policy?
The amount the insured pays before the insurer covers the rest
The percentage of covered expenses the insured must pay
The maximum amount the insurer will pay for a covered loss
The premium payment made by the insured
#3
What is 'policyholder' in the context of insurance?
The person who receives benefits from an insurance policy
The person who sells insurance policies
The entity that issues an insurance policy
The person who holds an insurance policy
#4
Which of the following is a characteristic of disability insurance?
Provides coverage for medical expenses
Pays a lump sum upon death
Replaces lost income due to illness or injury
Covers damage to property caused by the insured
#5
Which type of insurance typically covers damage to a vehicle caused by a collision?
Health insurance
Life insurance
Home insurance
Auto insurance
#6
Which of the following is a benefit of having a higher deductible in an insurance policy?
Lower out-of-pocket expenses
Higher premiums
Reduced coverage limits
More comprehensive coverage
#7
What does 'deductible' refer to in an insurance policy?
The amount the insured pays out-of-pocket before the insurer pays a claim
The maximum amount the insurer will pay for a covered loss
The premium payment made by the insured
The additional coverage added to the basic policy
#8
In property insurance, 'actual cash value' refers to:
The replacement cost minus depreciation
The cost to rebuild the property
The total cost of the property
The market value of the property
#9
Which of the following types of life insurance offers a cash value component?
Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
#10
Which of the following is a benefit of having an insurance policy with a higher premium?
Lower coverage limits
Higher deductible
More comprehensive coverage
Reduced waiting period for claims
#11
What does 'rider' mean in the context of insurance?
The person who sells insurance policies
An amendment or addition to an insurance policy
The term for a policyholder's beneficiaries
The process of transferring insurance coverage
#12
In health insurance, what does 'out-of-pocket maximum' refer to?
The highest amount the insured has to pay for covered services in a year
The minimum deductible required before coverage begins
The maximum deductible allowed under the policy
The premium payment made by the insured
#13
What is 'underwriting' in the context of insurance?
The process of assessing risk and determining premiums
The process of filing an insurance claim
The process of canceling an insurance policy
The process of paying insurance premiums
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