Home and Auto Insurance Terminology Quiz

What does the term "Premium" refer to in the context of insurance?

• The contract between the insured and insurer

• The compensation received from the insurance company

• The amount paid by the insured for insurance coverage

• The coverage limits specified in the policy

What is a "Policy" in the insurance industry?

• A price quote for insurance coverage

• A written contract detailing insurance coverage terms

• The process of determining the value of assets

• The financial protection against legal liabilities

Which term is used to describe the process of determining the value of property or damages for insurance purposes? (a)  

• Rider
• Appraisal
• Premium
• Claim

Match the following types of protection with the correct insurance coverage.

• What does "Liability Insurance" provide protection against?

• Loss of personal belongings

• What does "Property Insurance" provide protection against?

• Bodily injury liabilities

• What does "Liability Insurance" provide protection against?

• Property damage liabilities

• What does "Property Insurance" provide protection against?

• Theft and vandalism

Which type of coverage in auto insurance protects against bodily injury claims?

• Loss of personal belongings

• Bodily injury liabilities

• Property damage liabilities

• Theft and vandalism

What is the purpose of "Uninsured/Underinsured Motorist Coverage" in auto insurance?

• Protect against theft

• Cover non-collision damages

• Provide medical payments

• Safeguard against uninsured drivers

What is the role of an "Umbrella Policy" in insurance?

• Provides coverage beyond primary insurance limits

• Covers only natural disasters

• Limits coverage to personal belongings

• Protects against uninsured motorists

Which term refers to the amount the insured must pay before the insurance company covers the remaining costs of a claim?

• Appraisal

• Deductible

• Point

• Rider

"No-Fault Insurance" aims to (a)   in the insurance system.

• Assign risk to high-risk individual
• Increase litigation in accident cas
• Compensate each party's own insuran
• Streamline the claims process

What is the main purpose of an "Appraisal" in insurance?

• Determine coverage limits

• Assess the value of covered items