Types of Insurance Quiz

The chance of loss from an event that cannot be entirely controlled is called:

• risk

• insurance

• premium

At least six months of expenses set aside to cover costs of unexpected expenses is called

• insurance

• emergency savings

• policy

A financial product purchased by many people facing a similar risk to protect against the risk of larger losses is called:

• insurance

• emergency savings

• premium

A contract between the insurance company and the insured that states the exact terms of the policy is called:

• policy

• premium

• risk

The risks covered and amount of money paid for losses under an insurance policy is called:

• coverage

• premium

• policy

The person who owns the insurance policy is the:

• beneficiary

• policy holder

• claim

The money paid to purchase an insurance policy is called:

• premium

• deductible

• co-insurance

A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury is called:

• claim

• deductible

• risk

The out-of-pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss is called:

• risk

• deductible

• premium

This requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid:

• co-insurance

• beneficiary

• policy