Insurance Regulations and Categories Quiz

National Association of Insurance Commissioners (NAIC) regulates insurance companies in the United States.

Collision insurance provides coverage for damage to the insured's own vehicle in the event of an accident.

The primary purpose of an insurance policy's deductible is to limit the insurer's liability.

Disability insurance protects against the loss of income due to a covered illness or injury.

Renters insurance covers damage to a rented apartment or home.

'D&O' in insurance stands for Directors and Officers, referring to a policy covering the personal liability of company executives.

Home appliance insurance is not a common category of insurance.

Whole life insurance is characterized by cash value accumulation over time.

In insurance, 'underwriting' refers to the process of assessing and evaluating risks before issuing a policy.

Malpractice insurance provides coverage for legal liabilities arising from professional services.

'Coinsurance' in health insurance refers to the percentage of costs paid by the insured after reaching the deductible.

The purpose of reinsurance is to provide coverage for insurance companies against catastrophic losses.

'UEB' in insurance typically stands for Uninsured Employers Benefits.

'Moral hazard' in insurance refers to the tendency for insured parties to increase their risk-taking behavior.

'Excess and surplus lines insurance' refers to coverage not available from standard insurers.