Insurance Review Flashcard

Front

Premium

Back

The amount the policyholder pays for the policy.

Front

Risk

Back

An unpredictable event which leads to loss or damage

Front

Insurance

Back

An arrangement between an individual and an insurer to protect the individual against risk

Front

Deductible

Back

The amount paid by the policyholder for the initial portion of a loss before the insurance coverage begins

Front

Policy

Back

A contract between the individual and the insurer specifying the terms of the insurance arrangement

Front

What affects the amount of an insurance premium? Type of Insurance, Terms of the policy, Amount of deductible

Back

All of the above

Front

What type of automobile insurance is the minimum required by law?

Back

Liability insurance

Front

Juan’s car was parked in the street. Someone crashed into his car and left the scene of the accident before Juan saw the damage. Which insurance covers the repairs to Juan’s car? Options: Comprehensive, Uninsured/Underinsured, Collision

Back

Uninsured/Underinsured

Front

A tornado blew a tree down on Malik’s car. Which insurance coverage would pay for the damage to Malik’s car? Options: Comprehensive, Collision, Medical payments

Back

Comprehensive

Front

Simone is texting while driving and crashes into another car in an intersection. The passengers in the other car are injured. Which insurance coverage will pay for the injuries for the people in the other car? Options: Medical payments, Uninsured/underinsured, Bodily injury liability

Back

Bodily injury liability