Understanding Insurance Concepts

What did people do in ancient times to ensure their safety?

• They paid money to insurance companies.

• They formed groups to help each other in danger.

• They ignored risks.

• They relied on government help.

What is the purpose of insurance?

• To make money for companies.

• To protect against specific risks.

• To avoid paying taxes.

• To increase property value.

What must the insured pay to the insurance company? When is it paid?

• A deductible, paid annually.

• A premium, paid periodically.

• A fee, paid monthly.

• A tax, paid yearly.

What is an actuary?

• A person who sells insurance.

• A professional who calculates risks.

• A lawyer for insurance companies.

• A government official.

Which of the following is a type of insurance?

• Insurance against happiness.

• Insurance for pets.

• Life insurance.

• Insurance for vacations.

What is a deductible?

• The amount the insured must pay before the insurance covers the rest.

• A bonus given by the insurance company.

• A penalty for making a claim.

• A fee for late payment.

Fill in the blank: In ancient times, people formed groups to help each other in case of ____.

• joy

• danger

• celebration

• boredom

Fill in the blank: The purpose of insurance is to protect against specific ____.

• joys

• risks

• celebrations

• events

Fill in the blank: An actuary is a professional who calculates ____.

• happiness

• risks

• celebrations

• events

Fill in the blank: A premium is paid to the insurance company ____.

• A) annually

• B) periodically

• C) monthly

• D) yearly