Risk and Insurance Coverage Quiz
Explore actuarial science with this quiz covering insurance terms, policies, and concepts. Test yourself now!
#1
Which of the following is a type of risk in insurance?
Market Risk
Operational Risk
Systematic Risk
All of the above
#2
What does the term 'deductible' refer to in insurance?
The maximum amount the insured can claim
The portion of the loss that the insured must pay out of pocket
The premium paid by the insured
The coverage limit of the policy
#3
Which type of insurance provides coverage for damage to another person's property?
Health insurance
Homeowners insurance
Auto insurance
Liability insurance
#4
Which of the following is NOT a type of auto insurance coverage?
Comprehensive coverage
Collision coverage
Liability coverage
Homeowners coverage
#5
What is 'renewal' in insurance?
The process of assigning the risk of loss to another party
The process of extending the term of an insurance policy
The process of evaluating and determining the risk of insuring a particular person or asset
The process of recovering the amount paid for a loss from a third party
#6
Which of the following is NOT typically covered by a standard homeowners insurance policy?
Damage caused by fire
Flood damage
Theft of personal belongings
Liability coverage
#7
What is 'coinsurance' in the context of health insurance?
A policyholder's share of the costs of a covered healthcare service, calculated as a percentage of the allowed amount for the service
A fixed amount the insured must pay for covered services after meeting the deductible
The maximum amount the insured can claim for medical expenses in a policy year
The portion of a covered loss that the insured must pay before the insurance company pays the rest
#8
What is the purpose of reinsurance?
To provide insurance coverage for high-risk individuals
To transfer a portion of risk from the primary insurer to another insurer
To provide insurance coverage for rare events
To regulate the insurance industry
#9
Which of the following is NOT a type of life insurance?
Term life insurance
Whole life insurance
Universal life insurance
Comprehensive life insurance
#10
What is 'exclusion' in an insurance policy?
A condition that restricts coverage for certain types of losses
A provision that guarantees coverage for all types of losses
A clause that increases the premium for high-risk individuals
A provision that allows policyholders to cancel their policies at any time
#11
What does 'endorsement' mean in insurance?
An amendment or addition to an insurance policy that changes the coverage provided
A discount offered to policyholders who have a good claims history
The process of renewing an insurance policy
The process of evaluating and determining the risk of insuring a particular person or asset
#12
In insurance, what is 'underwriting'?
The process of evaluating and determining the risk of insuring a particular person or asset
The process of negotiating the terms of an insurance policy
The process of settling insurance claims
The process of selling insurance policies to potential customers
#13
What is 'actuarial science' in the context of insurance?
The study of probability and statistics to assess risk and uncertainty in insurance, finance, and other industries
The process of calculating premiums for insurance policies
The process of underwriting insurance policies
The process of adjusting insurance claims
#14
What is 'subrogation' in insurance?
The process of assigning the risk of loss to another party
The process of negotiating a settlement between the insured and the insurer
The process of recovering the amount paid for a loss from a third party
The process of calculating the premium for an insurance policy
#15
What is 'moral hazard' in insurance?
The risk that an insured event will occur
The risk that the insured will intentionally cause a loss to collect insurance proceeds
The risk that an insured property will be damaged by a natural disaster
The risk that the insured will misrepresent information to obtain lower premiums
#16
What does 'underwriting profit' mean in insurance?
The profit made by an insurance company from underwriting activities
The process of evaluating and determining the risk of insuring a particular person or asset
The profit made by an insurance company from investment activities
The profit made by an insurance company from claims payouts
#17
What is 'actuary' in insurance?
The process of evaluating and determining the risk of insuring a particular person or asset
A professional who uses mathematics, statistics, and financial theory to assess risk and uncertainty for insurance companies
The process of negotiating a settlement between the insured and the insurer
The process of recovering the amount paid for a loss from a third party
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