WorksheetsInsurance Basics - I
Total questions: 14
Worksheet time: 14mins
A Premium is ..........................
a policyholder's request for payment for a loss
the amount the policyholder must pay for insurance coverage
the possibility of incurring a loss
the profit made from insurance
True or False. Every risk you face results in a loss
True
False
A policyholder is
Another term for an insurance company
The person or company buying the insurance policy
The amount paid for insurance coverage
True or False. To be insurable, the same type of risk must be shared by a large number of businesses or individuals.
True
False
The reason businesses purchase insurance is to
make a profit
reduce taxes
provide financial protection
increase sales
The ______ is an amount that the policy-holder must pay out of pocket before the insurer pays a claim.
endorsement
premium
deductible
annual premium
Insurance is a means of
eliminating risk
avoiding risk
retaining risk
transferring risk
The insurance company is liable to pay the claim amount only when it exceeds the
policy limit
premium
risk
deductible
A morale hazard is ?
carelessness or irresponsibility
creating a loss to make a claim
condition, occupancy or use of property
a victimless crime
For a Risk to be insurable, it must be
financial, fundamental and pure in nature
non-financial, fundamental and pure in nature
non-financial, fundamental and speculative in nature
financial, pure and particular in nature.
Policies with high deductibles are very expensive
True
False
For payments done during this period no late fees is charged and the policy will also be fully in effect, even if the payment is not done in this period.
deductible
premium
grace period
______ accelerates the operations of ______
Hazards, perils.
Perils, hazards
Policies can also be with Zero Deductibles
True
False
