WorksheetsInsurance Terminology in Writing
Total questions: 10
Worksheet time: 2mins
What is a 'premium' in the insurance industry?
The amount an insurer pays for a policy.
The amount a policyholder pays for an insurance policy.
The total coverage amount of an insurance policy.
The maximum amount an insurer will pay for a claim.
What is a 'deductible' in an insurance policy?
The amount the insurer pays before the policyholder covers the rest.
The monthly payment for an insurance policy.
The total cost of the insurance policy.
The amount the policyholder must pay out of pocket before the insurance company pays a claim.
What is the main difference between 'coverage' and 'policy limit'?
Coverage is the total cost of the policy; policy limit is the monthly payment.
Coverage is the policyholder's out-of-pocket expense; policy limit is the insurer's profit margin.
Coverage is the insurer's fee; policy limit is the policyholder's deductible.
Coverage refers to what is protected under the policy; policy limit is the maximum amount the insurer will pay for a claim.
What is 'underwriting' in the insurance industry?
The process of filing a claim.
The process of selling insurance policies.
The process of assessing risk and determining the terms and cost of an insurance policy.
The process of renewing an insurance policy.
What is an 'exclusion' in an insurance policy?
An additional benefit provided by the insurer.
A discount on the premium.
A clause that specifies what is not covered by the insurance policy.
A type of policy coverage.
What is the main difference between a 'claim' and a 'benefit'?
A claim is the insurer's fee; a benefit is the policyholder's out-of-pocket expense.
A claim is a request for payment by the policyholder; a benefit is the payment made by the insurer.
A claim is the amount paid by the insurer; a benefit is the total policy coverage.
A claim is the policyholder's monthly payment; a benefit is the policy's deductible.
What does 'liability' mean in an insurance context?
The total cost of the insurance policy.
The legal responsibility to pay for damages or losses.
The monthly premium payment.
The policyholder's out-of-pocket expense.
What is an 'actuary' and what is their role in an insurance agency?
A person who processes insurance claims.
A customer service representative.
A person who sells insurance policies.
A professional who calculates risks and premiums for insurance policies.
What is 'reinsurance' and why is it used?
Insurance that protects the insurer from large claims by sharing the risk with another insurance company.
Insurance that provides additional benefits to the policyholder.
Insurance that covers the policyholder's deductible.
Insurance that covers the policyholder's monthly premium.
What is the main difference between an 'insurance broker' and an 'insurance agent'?
A broker processes claims; an agent calculates premiums.
A broker sets insurance rates; an agent sells policies.
A broker represents the policyholder and can offer policies from multiple insurers; an agent represents an insurance company and offers its policies.
A broker works for a specific insurance company; an agent works for multiple companies.
