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Insurance Terminology Quiz

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

What is the definition of insurance according to the learning material?

a)

The amount of money paid for an insurance policy

b)

An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

c)

The contract between an insurance company and the insured individual

d)

The amount of liability protection offered to an individual through an insurance policy

2.

What does the term 'Policy' refer to in the context of insurance?

a)

The payments an individual makes each time they get medical service

b)

The amount of money you will pay out of pocket before the insurance company will make a payment

c)

The contract between an insurance company and the insured individual

d)

A formal request by a policyholder to their insurance company for compensation for a covered loss

3.

What is a 'Premium' in the context of insurance?

a)

The most a policyholder has to spend for covered services in a year

b)

The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse in coverage

c)

The amount of money paid for an insurance policy

d)

The payments an individual makes each time they get medical service

4.

What is the 'Grace Period' in insurance terms?

a)

The amount of money you will pay out of pocket before the insurance company will make a payment

b)

The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse in coverage

c)

The most a policyholder has to spend for covered services in a year

d)

The payments an individual makes each time they get medical service

5.

What does 'Deductible' mean in an insurance policy?

a)

The amount of liability protection offered to an individual through an insurance policy

b)

The amount of money you will pay out of pocket before the insurance company will make a payment

c)

The contract between an insurance company and the insured individual

d)

The amount of money paid for an insurance policy

6.

What is a 'Claim' in the context of insurance?

a)

The amount of money paid for an insurance policy

b)

The contract between an insurance company and the insured individual

c)

A formal request by a policyholder to their insurance company for compensation for a covered loss

d)

The amount of liability protection offered to an individual through an insurance policy

7.

What are 'Copayments' in the context of medical services?

a)

The amount of money you will pay out of pocket before the insurance company will make a payment

b)

The most a policyholder has to spend for covered services in a year

c)

The payments an individual makes each time they get medical service

d)

The amount of money paid for an insurance policy

8.

What is the 'Out-of-Pocket Maximum' in an insurance policy?

a)

The amount of money paid for an insurance policy

b)

The amount of liability protection offered to an individual through an insurance policy

c)

The most a policyholder has to spend for covered services in a year

d)

The payments an individual makes each time they get medical service