Insurance Basics

Which of the following terms describes the scope of protection provided under an insurance policy?

• coverage

• premium

• deductible

• risk

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

• deductible

• premium

• policy

• coverage

Which of the following terms describes the portion of a claim the policyholder must pay before the insurance company provides the benefits?

• deductible

• coverage

• policy

• premium

Which of the following types of risks are completely accidental and unintentional?

• negligence

• hazards

• speculative risks

• pure risks

Which of the following types of risks carry a chance of either loss or gain?

• pure risks

• negligence

• hazards

• speculative risks