Insurance Vocabulary/Knowledge Check

Match the following words with their definitions

• Policy

• a contract between the individual and the insurance company. It states the terms of the insurance arrangement/agreement

• Peril

• the person who purchases the policy

• Policy Holder

• an agreement intended to protect an individual against financial loss.

• Insurance

• something that increases the likelihood that a particular event will happen

• Risk Factor

• an event which can cause a financial loss like fire, falling trees, lightning, accident, etc

Match the following

• Coverage

• a fee paid to the insurance company for providing the insurance

• Claim

• a person who relies on someone else financially

• Premium

• a request from the policy holder for insurance to cover an event

• Dependent

• the person who receives the money is the insured person dies

• Beneficiary

• what is protected and by what amount for specific losses provided under the terms of an insurance policy

Match the following

• Waiting Period

• the maximum amount an insurance company will pay for a loss

• Co-insurance

• a fixed amount of money that an insured pays for a covered medical service or prescription

• Limit

• requires the insured person to pay a fixed percentage of loss after the deductible has been paid

• Deductible

• the period of time specified in an insurance policy that must pass before coverage can begin

• Copay

• the amount that must be paid out of pocket by the policy holder. After the policy holder pays the deductible, the insurance company will pay the rest

What is an event which can cause financial loss?

• Peril

• Risk Factor

• Claim

• Limit

What is something that increases the likelihood that a particular event will happen?

• Peril

• Risk Factor

• Claim

• Limit

What is the fee paid to an insurance company for the privilege of having insurance coverage?

• Claim

• Premium

• Limit

• Coverage

When you have a loss, you should file a(n) ________ with your insurance company.

• Peril

• Premium

• Claim

• Waiting Period

What is the contract between you and an insurance company?

• Policyholder

• Beneficiary

• Dependent

• Policy

What is a maximum amount set by a policy that an insurance company will pay for a loss?

• Benefit

• Deductible

• Limit

• Coinsurance

What is the amount that must be paid on a claim by the insured before any insurance proceeds are distributed?

• Deductible

• Peril

• Claim

• Limit