#1
Which type of insurance provides coverage for damage to your own vehicle in an accident?
Collision Insurance
ExplanationCoverage for damage to your own vehicle in an accident.
#2
What is the purpose of a deductible in an insurance policy?
To discourage small and frequent claims
ExplanationDiscouragement of small and frequent claims.
#3
What is the purpose of an insurance policy's 'exclusion clause'?
To specify perils not covered by the policy
ExplanationSpecification of perils not covered by the policy.
#4
What is 'renewal notice' in the context of insurance?
A reminder to review and renew the insurance policy
ExplanationReminder to review and renew insurance policy.
#5
What is 'sublimit' in insurance policies?
A limit set within the overall coverage for specific items or risks
ExplanationLimit set within overall coverage for specific risks.
#6
What is the primary purpose of an insurance premium?
To create a pool of funds for claims payouts
ExplanationThe creation of funds for claims payouts.
#7
In insurance, what does the term 'underwriting' refer to?
Assessing and accepting risks
ExplanationAssessing and accepting risks in insurance.
#8
In insurance, what is 'reinsurance'?
An insurance policy purchased by an insurer to limit its own risk exposure
ExplanationPolicy purchased by insurer to limit risk exposure.
#9
What does 'indemnity' mean in the context of insurance?
Compensation for loss or damage
ExplanationCompensation for loss or damage in insurance.
#10
In health insurance, what does 'co-payment' refer to?
A fixed amount the insured must pay for each medical service
ExplanationFixed amount insured pays for each medical service.
#11
What is the 'waiting period' in insurance policies?
The time an insured must wait before coverage begins
ExplanationTime insured must wait before coverage begins.
#12
What is 'moral hazard' in the context of insurance?
The increased risk due to the insured's behavior
ExplanationIncreased risk due to insured's behavior.
#13
What is 'subrogation' in insurance terminology?
The legal right of the insurer to pursue a third party for a claim payment
ExplanationInsurer's right to pursue third party for claim payment.
#14
What is the role of an insurance adjuster?
Investigating and evaluating insurance claims
ExplanationInvestigating and evaluating insurance claims.
#15
What is 'coinsurance' in property insurance?
The sharing of risk between the insurer and the insured
ExplanationRisk sharing between insurer and insured.
#16
What is the purpose of 'endorsements' in an insurance policy?
To modify or add coverage to the policy
ExplanationModification or addition of coverage to the policy.
#17
In auto insurance, what does 'no-fault insurance' mean?
Insured drivers are not at fault for accidents
ExplanationInsured drivers not at fault for accidents.