Insurance Terminology Quiz

What is the definition of "Beneficiary" in insurance terms?

• The head of the insurance department.

• A person or entity named in the policy to receive the proceeds.

• The insurer's license to conduct business.

• A legal principle that binds the parties to the contract.

What does "Certificate of Authority" refer to in the context of insurance?

• The head of the insurance department.

• A person or entity named in the policy to receive the proceeds.

• An insurer's license to conduct business.

• A legal principle that binds the parties to the contract.

Who is the "Commissioner" in the context of insurance?

• The head of the insurance department.

• A person or entity named in the policy to receive the proceeds.

• An insurer's license to conduct business.

• A legal principle that binds the parties to the contract.

What is "Consideration" in an insurance contract?

• The head of the insurance department.

• A person or entity named in the policy to receive the proceeds.

• An insurer's license to conduct business.

• The value given in exchange for the contractual promise.

What is "Controlled Business" in the context of insurance?

• Life insurance written on the agent's own life or the life of the agent's family.

• The head of the insurance department.

• An insurer's license to conduct business.

• A legal principle that binds the parties to the contract.

What does "Credit Disability Insurance" cover?

• Life insurance written on the agent's own life or the life of the agent's family.

• The head of the insurance department.

• An insurer's license to conduct business.

• Insurance that covers loan payments if the debtor is totally disabled.

What does the term "Indemnify" mean in the context of insurance?

• To pay or replace for losses sustained.

• The spreading of financial risk over a large number of people.

• A risk that satisfies all of the requirements to be insured.

• The possibility of financial or economic loss by one person upon the death of another person.

What is "Insurable Interest"?

• The possibility of financial or economic loss by one person upon the death of another person.

• A risk that satisfies all of the requirements to be insured.

• The spreading of financial risk over a large number of people.

• A policy provision that represents the insurer's promise to pay benefits.

What does "Lapse" refer to in insurance terms?

• Termination of a policy due to non-payment of the premium.

• A life policy covering 2 or more insureds with benefits paid upon the first to die or the last to die.

• A basic principle of insurance which states that the larger the number of similar risks, the more reliable the prediction of possible losses.

• A form of whole life insurance whereby premium payments are limited to a specified number of years.

What is the "Law of Large Numbers" in insurance?

• A basic principle of insurance which states that the larger the number of similar risks, the more reliable the prediction of possible losses.

• A form of whole life insurance whereby premium payments are limited to a specified number of years.

• A life policy covering 2 or more insureds with benefits paid upon the first to die or the last to die.

• Termination of a policy due to non-payment of the premium.