Insurance – Vocabulary Terms

Premiums in an insurance policy are:

• The amount paid periodically to keep the policy active

• The benefits received from the policy

• The duration of the policy

• The conditions under which the policy is void

A deductible in an insurance policy is:

• the amount you pay out of pocket before insurance covers the rest

• the total amount covered by the insurance policy

• the monthly premium paid for the insurance policy

• the amount the insurance company pays you for a claim

Who is a policyholder in an insurance policy?

• The person who sells the insurance policy

• The person who is covered by the insurance policy

• The person who pays the premium for the insurance policy

• The person who underwrites the insurance policy

A coverage limit in an insurance policy is:

• the maximum amount an insurer will pay for a covered loss

• the minimum amount an insurer will pay for a covered loss

• the average amount an insurer will pay for a covered loss

• the exact amount an insurer will pay for a covered loss

Underwriting in the context of insurance is:

• the process of evaluating the risk of insuring a home, car, driver, or individual's health or life.

• the act of selling insurance policies to customers.

• the process of filing a claim with an insurance company.

• the act of paying out claims to policyholders.

Auto insurance covers:

• only damages to your car

• damages to your car and others' property

• only theft of your car

• only medical expenses

Health insurance covers:

• only medical expenses

• only dental expenses

• both medical and dental expenses

• none of the above

Homeowners insurance is a type of property insurance that covers losses and damages to an individual's house and assets in the home. What does it typically cover?

• Only the structure of the home

• The structure of the home and personal belongings

• Only personal belongings

• Neither the structure nor personal belongings

Life insurance is a financial product that provides what benefits?

• Financial protection for beneficiaries

• Coverage for medical expenses

• Investment opportunities

• Tax deductions

Liability insurance covers:

• Property damage and bodily injury to others

• Personal injury to the policyholder

• Damage to the policyholder's own vehicle

• Medical expenses for the policyholder