Insurance Vocabulary Quiz

A set dollar amount you agree to pay each time you receive medical treatment, while the insurance company agrees to cover the rest

• Claim

• Copay

• Loss

• Actuary

When someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them

• Copay

• Loss

• Risk

• Claim

The spreading of financial risk evenly among a large number of contributors to the program

• Premium

• Probability

• Risk Pooling

• Deductible

The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state

• Disability Insurance

• Maximum Out-Of-Pocket Expenses

• Deductible

• Minimum Liability Limit

An estimate of what premium you would pay for a certain insurance coverage plan

• Quote

• Insurance Agent

• Actuary

• Probability

An employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums → Actuary

• True

• False

Auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses → Uninsured/Underinsured Coverage

• True

• False

A contract in which an individual or entity receives financial protection or reimbursement against losses → Insuring Agreement

• True

• False

Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident → Liability Coverage

• True

• False

The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time

• Premium

• Probabily

• Risk Pooling

• Claim