Insurance Basics Quiz

What is a written contract between the insured and an insurance company called?

• Insurance

• Proposal form

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• Premium

What is an application form filled out by the person applying for insurance?

• Proposal form

• Subrogation

• Indemnity

• Contribution

What is a reduction in the cost of your insurance because you made no claims in the previous year?

• Compensation

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• No-claims bonus

• Discount

What is the process by which an insurer can recover the amount paid from any party who caused the loss?

• Subrogation

• Indemnity

• Contribution

• Assurance

What is the obligation to act in complete honesty and disclose all relevant facts?

• Endowment Life Insurance

• Insurable Interest

• Average clause

• Utmost Good Faith

What is it called when a profit cannot be made from insurance?

• Compensation

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• Indemnity

• Discount

What is it called when risk is split between both companies?

• Contribution

• Assurance

• Actuary

• Subrogation

What is something of value that, if lost, would cause you financial harm?

• Insurable Interest

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• Premium

• Assessor

What are different risk factors added to the premium of a person's insurance called?

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• Discount

• Compensation

• Average clause

What might an insurance company offer to customers who make an effort to reduce their risk?

• Discount

• Indemnity

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• No-claims bonus