Insurance Basics: Overview Flashcard

Front

Which term describes the scope of protection provided under an insurance policy? Options: Coverage, Premium, Deductible, Risk

Back

Coverage

Front

Which term describes the fee the policyholder pays to the insurance company in order to be insured for a defined period of time?

Back

Premium

Front

Which term describes the portion of a claim the policyholder must pay before the insurance company provides the benefits? Options: Coverage, Policy, Premium, Deductible

Back

Deductible

Front

Which of the following types of risks are completely accidental and unintentional? Hazards, Negligence, Pure risks, Speculative risks

Back

Pure risks

Front

Which of the following types of risks carry a chance of either loss or gain? Negligence, Pure risks, Hazards, Speculative risks

Back

Speculative risks

Front

Which of the following is NOT an important factor when setting insurance goals? Income, Age, Personality, Lifestyle

Back

Personality

Front

Which of the following is NOT an important factor when choosing an insurance company? Licensing, Price, Financial solidity, Location

Back

Location

Front

It is suggested to compare at least how many price quotes in order to get a reasonable price?

Back

Three

Front

Asking yourself “do I have any new needs” is a method to fulfill which step of selecting an insurance program? Options: Setting insurance goals, Developing a plan to reach the goals, Putting the plan into action, Reviewing the results

Back

Reviewing the results

Front

Which government agency can confirm whether an insurance company has a valid license? Options: State Insurance Department, National Association of Insurance Commissioners, American Insurance Association, Global Federation of Insurance Associations

Back

State Insurance Department