Insurance Basics - Lesson 4

An insurance policy is:

• A contract between an individual and an insurance company.

• A legal document for buying a house.

• A type of investment plan.

• A government-issued identification card.

An insurance policy is a legal contract between a person buying insurance and an insurance company.

• True

• False

Who is the person buying insurance in an insurance policy?

• The person buying insurance in an insurance policy is typically referred to as the policyholder.

• The person buying insurance in an insurance policy is typically referred to as the insurer.

• The person buying insurance in an insurance policy is typically referred to as the beneficiary.

• The person buying insurance in an insurance policy is typically referred to as the underwriter.

An insurance policy explains:

• The terms and conditions of coverage

• The history of the insurance company

• The stock market trends

• The weather forecast

What is a premium in insurance terms?

• The amount paid for insurance coverage

• The total value of the insured asset

• The deductible amount in a policy

• The claim amount received by the insured

A deductible is the portion of the cost of a loss that an insurance policyholder pays before the insurance company pays the remaining cost.

• True

• False

An insurance benefit is:

• A payment made by an insurance company to a policyholder or beneficiary

• A type of insurance policy

• A premium paid by the policyholder

• A claim filed by the policyholder

Who is a beneficiary in insurance terms?

• A beneficiary in insurance terms is a person or entity designated to receive the benefits or proceeds from an insurance policy upon the occurrence of a specified event, such as the death of the insured.

• A beneficiary in insurance terms is the insurance company that provides the policy.

• A beneficiary in insurance terms is the agent who sells the insurance policy.

• A beneficiary in insurance terms is the government entity that regulates insurance policies.

Which of the following kinds of insurance are mentioned in the document?

• Health insurance

• Car insurance

• Life insurance

• Travel insurance

Which of the following is a government insurance program?

• Medicare

• Blue Cross Blue Shield

• Aetna

• UnitedHealthcare