#1
Which type of insurance provides coverage for a specific period and pays out a death benefit if the insured passes away during that period?
Term life insurance
Whole life insurance
Universal life insurance
Variable life insurance
#2
What is the waiting period in an insurance policy?
The time a policyholder must wait before making a claim
The period during which the policyholder cannot renew the policy
The time it takes for the insurance company to process a claim
The duration between policy inception and the first premium payment
#3
In property insurance, what does 'actual cash value' (ACV) represent?
The cost of replacing the damaged property with new property of similar kind and quality
The current market value of the damaged property, taking into account depreciation
The total amount of money paid by the insurance company for a covered loss
The maximum amount the policyholder is responsible for paying out of pocket
#4
What is the main purpose of liability coverage in an insurance policy?
To cover damage to the insured's property
To provide protection against legal claims for bodily injury or property damage caused by the insured
To reimburse the insured for medical expenses
To cover damage to the property of others
#5
What is 'moral hazard' in insurance?
The intentional withholding of information by the policyholder
The increased risk of loss due to the policyholder's unethical behavior
The legal right of the insurance company to pursue a third party responsible for a loss to the insured
The maximum amount a policyholder has to pay out of pocket for covered services
#6
What is the cash value component in a whole life insurance policy?
The amount paid to beneficiaries upon the insured's death
The savings component that grows over time
The premium paid by the policyholder
The coverage amount of the policy
#7
In health insurance, what is a copayment?
The total amount a policyholder pays for healthcare services before insurance coverage kicks in
A fixed amount the policyholder pays for a covered healthcare service, usually at the time of service
The maximum amount a policyholder has to pay out of pocket for covered services in a policy period
The percentage of covered expenses that a policyholder is responsible for after meeting the deductible
#8
What does the term 'subrogation' mean in the context of insurance?
The transfer of policy ownership to another party
The legal right of an insurance company to pursue a third party responsible for a loss to the insured
The process of determining the value of a claim
The cancellation of an insurance policy
#9
In life insurance, what is the 'grace period'?
The period during which the policyholder can reinstate a lapsed policy without undergoing a medical examination
The period during which the policyholder can cancel the policy and receive a full refund
The period during which the policyholder can change the beneficiary designation
The period during which the policyholder can skip premium payments without penalty
#10
What is a 'rider' in an insurance policy?
A person who investigates insurance claims
A provision added to a policy to modify or expand its coverage
A type of insurance policy for motorcycles
A term used in life insurance to refer to the policyholder
#11
What is 'coinsurance' in health insurance?
The sharing of the cost between the policyholder and the insurance company
A type of health insurance that covers the cost of prescription drugs
The maximum amount a policyholder has to pay out of pocket for covered services
The percentage of covered expenses that a policyholder is responsible for after meeting the deductible
#12
What does the term 'deductible' mean in an insurance policy?
The amount the insurance company pays for a covered loss
The maximum amount the policyholder is responsible for paying out of pocket
The percentage of covered expenses that a policyholder is responsible for after meeting the deductible
The amount the policyholder must pay before the insurance coverage begins
#13
What is the purpose of a deductible in an insurance policy?
To limit the coverage amount
To reduce the policy premium
To determine the policy term
To share the cost between the insured and the insurer
#14
In auto insurance, what does 'comprehensive coverage' typically include?
Coverage for damage to your vehicle caused by a collision with another vehicle
Coverage for damage to your vehicle caused by a covered peril other than a collision
Coverage for bodily injury liability
Coverage for damage to another person's vehicle in an accident
#15
What is 'underwriting' in the context of insurance?
The process of calculating insurance premiums
The process of investigating and evaluating the risk associated with insuring a person or property
The process of marketing insurance products
The process of settling insurance claims
#16
What is the purpose of an insurance endorsement?
To terminate an insurance policy
To add, delete, or modify coverage in the policy
To calculate the premium for a specific policy
To provide a discount on insurance premiums
#17
What is the role of an insurance adjuster?
To sell insurance policies to potential customers
To assess and investigate insurance claims
To calculate insurance premiums
To design new insurance products
#18
In insurance terminology, what does the term 'exclusion' refer to?
A condition that triggers the coverage of an insurance policy
A provision that limits or eliminates coverage for certain risks
The process of canceling an insurance policy
The amount of money the policyholder must pay before the insurance coverage begins
#19
What is 'reinsurance' in the insurance industry?
The process of insuring a policy with multiple insurance companies
The process of transferring a portion of the risk to another insurance company
The process of canceling an insurance policy
The process of adjusting insurance claims