Insurance Basics

Front

What are the factors that can affect insurance rates?

Back

Age, gender, location, driving record, type of vehicle, coverage amount, and credit score.

Front

Which type of insurance policy provides coverage for damage to your own vehicle in an accident?

Back

collision insurance

Front

What is the purpose of a deductible in an insurance policy?

Back

The purpose of a deductible in an insurance policy is to share the risk between the insurance company and the policyholder.

Front

What is the significance of underwriting in the insurance industry?

Back

Underwriting is important in the insurance industry as it helps insurers assess and manage risks to ensure profitability and sustainability.

Front

How does a person's age affect their insurance rates?

Back

A person's age can affect their insurance rates due to the risk factors associated with different age groups.

Front

The money paid to an insurance company to purchase a policy.

Back

premium

Front

The out-of-pocket money paid by a policyholder before an insurance company will cover the remaining costs caused by a loss.

Back

deductible

Front

John's father passed away. What type of insurance will provide his family with financial support?

Back

life

Front

A financial product purchased by many people facing a similar risk to protect against the risk of loss.

Back

insurance

Front

When a policyholder is required to pay a fixed percentage of the loss after the deductible has been paid. This is an example of:

Back

paying coinsurance