Insurance & Risk Review

Front

What is a deductible in insurance?

Back

A deductible is the amount a policyholder must pay out-of-pocket before the insurance company pays for a covered claim.

Front

If a policyholder has a deductible of $500 and a claim of $2,000, how much will the insurance company pay?

Back

$1,500

Front

What type of insurance provides coverage for medical expenses and hospital visits?

Back

Health Insurance

Front

What is the purpose of homeowners insurance?

Back

Homeowners insurance protects against loss or damage to a home and its contents, as well as liability for injuries that occur on the property.

Front

If an insurance policy has a premium of $600 and offers a 10% discount for paying annually, what is the total annual cost after the discount?

Back

$540

Front

What type of insurance is specifically designed to protect against loss from theft or damage to personal property?

Back

Property Insurance

Front

What is the difference between liability insurance and property insurance?

Back

Liability insurance covers legal claims against the policyholder, while property insurance covers damage to the policyholder's own property.

Front

What does the term 'premium' refer to in insurance?

Back

A premium is the amount paid for an insurance policy, typically on a monthly or annual basis.

Front

What is the maximum amount an insurance company will pay for a covered loss called?

Back

Coverage limit.

Front

In the context of insurance, what does 'exclusion' mean?

Back

An exclusion is a provision in an insurance policy that eliminates coverage for certain risks or events.