Insurance Concepts and Terminology

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

• Premium

• Policy

• Insurance

• Risk

• Deductible

The money paid to an insurance company to purchase a policy

• Premium

• Policy

• Insurance

• Risk

• Deductible

The out‐of‐pocket money paid by the policyholder before an

insurance company will cover the remaining costs attributed to the loss

• Premium

• Policy

• Insurance

• Risk

• Deductible

Which is the correct type of insurance that would be used: David’s mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

• Property and liability

• Health

• Life

• Disability

• Workers’ compensation

Which is the correct type of insurance that would be used: Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used in this case?

• Property and liability

• Health

• Life

• Disability

• Workers’ compensation

Which is the correct type of insurance that would be used: Joey’s father is in a car accident and cannot work. What type of insurance replaces his father’s earnings?

• Property and liability

• Health

• Life

• Disability

• Workers’ compensation

John is driving down the road and a deer runs into the road. He misses the deer but instead hits a small tree on the side of the road. What type of insurance would be used?

• Automobile

• Life

• Homeowners

• Health

• Disability

Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used?

• Automobile

• Life

• Homeowners

• Health

• Disability

Mary was getting ready for work and was rushing. She was straightening her hair and realized what time it was. She ran out of the house, forgot to turn the straightener off and her house caught fire. What type of insurance would be used?

• Automobile

• Life

• Homeowners

• Health

• Disability

You invite people to the apartment you rent and a guest trips over a pair of snow boots and breaks a finger.

• Health Insurance

• Disability Insurance

• Life Insurance

• Automobile Insurance (Liability or Property)

• Renters Insurance (Liability or Property)