Insurance Terminology Quiz

What is the definition of insurance according to the learning material?

• The amount of money paid for an insurance policy

• An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

• The contract between an insurance company and the insured individual

• The amount of liability protection offered to an individual through an insurance policy

What does the term 'Policy' refer to in the context of insurance?

• The payments an individual makes each time they get medical service

• The amount of money you will pay out of pocket before the insurance company will make a payment

• The contract between an insurance company and the insured individual

• A formal request by a policyholder to their insurance company for compensation for a covered loss

What is a 'Premium' in the context of insurance?

• The most a policyholder has to spend for covered services in a year

• The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse in coverage

• The amount of money paid for an insurance policy

• The payments an individual makes each time they get medical service

What is the 'Grace Period' in insurance terms?

• The amount of money you will pay out of pocket before the insurance company will make a payment

• The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse in coverage

• The most a policyholder has to spend for covered services in a year

• The payments an individual makes each time they get medical service

What does 'Deductible' mean in an insurance policy?

• The amount of liability protection offered to an individual through an insurance policy

• The amount of money you will pay out of pocket before the insurance company will make a payment

• The contract between an insurance company and the insured individual

• The amount of money paid for an insurance policy

What is a 'Claim' in the context of insurance?

• The amount of money paid for an insurance policy

• The contract between an insurance company and the insured individual

• A formal request by a policyholder to their insurance company for compensation for a covered loss

• The amount of liability protection offered to an individual through an insurance policy

What are 'Copayments' in the context of medical services?

• The amount of money you will pay out of pocket before the insurance company will make a payment

• The most a policyholder has to spend for covered services in a year

• The payments an individual makes each time they get medical service

• The amount of money paid for an insurance policy

What is the 'Out-of-Pocket Maximum' in an insurance policy?

• The amount of money paid for an insurance policy

• The amount of liability protection offered to an individual through an insurance policy

• The most a policyholder has to spend for covered services in a year

• The payments an individual makes each time they get medical service