#1
What does the term 'premium' refer to in insurance?
The total coverage amount
The cost of the insurance policy
The deductible amount
The insurer's profit margin
#2
What is 'coinsurance' in insurance policies?
Joint coverage for multiple policies
Shared financial responsibility between insurer and insured
A type of life insurance policy
Coverage for valuable coins and collectibles
#3
What is the purpose of 'policyholder surplus' in insurance?
Additional coverage for specific risks
Profit earned by the insurance company
Buffer for unforeseen losses and liabilities
Coverage for policyholders' personal assets
#4
What does the term 'sublimit' mean in insurance policies?
Secondary coverage for specific risks
Maximum limit of coverage for a specific item or condition
Policy provision allowing cancellation
Insurance policy endorsement
#5
What does 'insurable interest' mean in insurance?
The desire to purchase insurance
Financial stake in the insured person or property
The overall risk of the insured item
The premium amount paid by the policyholder
#6
What is the purpose of 'underwriting' in the insurance industry?
Determining the insured's eligibility
Calculating the premium amount
Handling claims processing
Selling insurance policies
#7
In insurance, what does 'subrogation' involve?
Transferring policy ownership
Legal process of recovering losses
Policy cancellation
Premium payment negotiation
#8
What does 'deductible' mean in insurance terms?
The portion of a claim paid by the insured
The maximum coverage limit
The insurer's profit margin
The total premium amount
#9
What is 'reinsurance' in the insurance industry?
Insurance coverage for recreational activities
Insurance for reins
Transfer of risk from one insurer to another
Renewal of insurance policies
#10
In insurance, what does 'indemnity' refer to?
Compensation for losses or damages
An insurance policy document
Insurance premium payment
Insurance fraud investigation
#11
What is 'adverse selection' in the context of insurance?
Choosing an insurance policy with the highest premium
Selling insurance policies to high-risk individuals
Selecting insurance coverage with the least benefits
Increased risk due to information asymmetry
#12
What is the significance of the term 'endorsement' in insurance policies?
Policy cancellation
Modifying or adding coverage
Insurance fraud prevention
Claims investigation
#13
What does 'moral hazard' refer to in the context of insurance?
Risk arising from natural disasters
Increased risk due to the insured's behavior
Fraudulent insurance claims
Failure to disclose pre-existing conditions
#14
What is the primary purpose of an 'insurance broker'?
Investigating insurance claims
Selling insurance policies directly to consumers
Negotiating premium rates with insurers
Assisting clients in finding suitable insurance coverage
#15
What does 'exclusion' mean in the context of insurance policies?
Specified perils not covered by the policy
Insurance policy termination
A type of premium discount
Coverage for extreme risks
#16
What does 'ceding company' mean in reinsurance?
Insurer that transfers risk to a reinsurer
Company that cancels insurance policies
Company specializing in premium collection
Reinsurer that accepts transferred risks
#17
What is the purpose of 'loss ratio' in insurance analytics?
Percentage of premiums paid as claims
Profit margin calculation
Insurance policy renewal assessment
Coverage for specific types of losses