Insurance Review Quiz

1. Premium

• 1. A contract between the individual and the insurer specifying the terms of the insurance arrangement

  2. Risk

• The amount paid by the policyholder for the initial portion of a loss before the insurance coverage begins

  3. Insurance

• The amount the policyholder pays for the policy

1. Risk

• 1. A contract between the individual and the insurer specifying the terms of the insurance arrangement

  2. Risk

• An unpredictable event which leads to loss or damage

• The amount the policyholder pays for the policy

1. Insurance

• An arrangement between an individual and an insurer to protect the individual against risk

• An unpredictable event which leads to loss or damage

• The amount the policyholder pays for the policy

1. Deductible

• An arrangement between an individual and an insurer to protect the individual against risk

• The amount paid by the policyholder for the initial portion of a loss before the insurance coverage begins

• The amount the policyholder pays for the policy

1. Policy

• A contract between the individual and the insurer specifying the terms of the insurance arrangement

• The amount paid by the policyholder for the initial portion of a loss before the insurance coverage begins

• The amount the policyholder pays for the policy

What affects the amount of an insurance premium?

• 1. Type of Insurance

• Terms of the policy

• Amount of deductible

• All of the above

What type of automobile insurance is the minimum required by law?

• 1. Medical payments insurance

• Uninsured/underinsured motorist insurance

• Liability insurance

 Juan’s car was parked in the street. Someone crashed into his car and left the scene of the accident before Juan saw the damage. Which insurance covers the repairs to Juan’s car?

• 1. Comprehensive

• Uninsured/

  Underinsured

• Collision

A tornado blew a tree down on Malik’s car. Which insurance coverage would pay for the damage to Malik’s car?

• Comprehensive

• Collision

• Medical payments

Simone is texting while driving and crashes into another car in an intersection. The passengers in the other car are injured. Which insurance coverage will pay for the injuries for the people in the other car?

• Medical payments

• Uninsured/underinsured

• Bodily injury liability