WorksheetsInsurance Terminology TEST
Total questions: 30
Worksheet time: 15mins
Which of the following terms describes the scope of protection provided under an insurance policy?
Coverage
Premium
Deductible
Risk
Which of the following terms describes the fee the policyholder pays to the insurance company in order to be insured for a defined period of time?
Deductible
Premium
Policy
Coverage
Which of the following terms describes the portion of a claim the policyholder must pay before the insurance company provides the benefits?
Coverage
Policy
Premium
Deductible
________ is the failure to take ordinary or reasonable care to prevent accidents from happening.
Risk
Peril
Harzard
Raul has a policy with his auto insurance company. A repair covered by the policy costing $1,500 would require him to pay $600 and then the insurance covers the remaining $900. What is another name for the $600 Raul must pay?
Risk
Deductible
Premium
Coverage
How many price quotes should consumers compare in order to get a reasonable price?
Two
Three
Four
Five
Insurance acts like a safety net for unforeseen events.
True
False
Select all of the following which are important factors when setting insurance goals.
Age
Income
Lifestyle
Personality
Select all of the following, which are important factors when choosing an insurance company.
Financial solidity
Licensing
Location
Price
Which of the following government agencies can confirm whether an insurance company has a valid license?
State Insurance Department
National Association of Insurance Commissioners
American Insurance Association
Global Federation of Insurance Associations
Extremely valuable personal property can be insured by purchasing which of the following types of insurance?
Additional replacement cost coverage
Dwelling coverage
Personal property floater
Green home coverage
Which of the following types of insurance pays the costs of minor accidental injuries to visitors of the policyholder’s home?
Umbrella policy
Medical payments coverage
Hospital indemnity plan
Universal life insurance
Select all of the following factors which affect home insurance prices.
Coverage amount
Home location
Homeowner’s income
Structure of the home
Mortgage protection life insurance is a policy designed specifically to repay mortgage debt in the event of the death of the borrower.
True
False
Felix’s home is less than 10 feet from the nearest water hydrant. As a result, his insurance costs less than those living further away. Which of the following factors are affecting Felix’s home insurance costs?
Type of structure
Location
Coverage amount
Policy type
Insurance rates are lower in high-crime areas.
True
False
A new home is more difficult to insure than an old one.
True
False
Jennifer owns a wood home and pays higher insurance rates than her neighbor, who owns a brick home. Which of the following factors are affecting Jennifer’s home insurance costs?
Type of structure
Location
Coverage amount
Policy type
Which of the following refers to the fact the policyholders are held responsible for any accident which occurs on their property?
Coverage amount
Specialized coverage
HO-1
Personal liability
Homeowner’s insurance covers floods and frozen pipes.
True
False
Automobile insurance is often required by which of the following types of laws?
Passenger Carrier Regulations
Federal Motor Vehicle Safety Standards
Financial Responsibility Laws
National Traffic and Motor Vehicle Safety Act
Insurance that covers damage to the policyholder’s car when it is involved in an accident is:
Collision Insurance
Assigned Risk Pool
Extended Warranty
Comprehensive Insurance
Some states have passed compulsory insurance laws requiring drivers to have ________.
Liability insurance
Personal injury insurance
Responsibility insurance
Simple insurance
Which of the following types of insurance covers costs if an individual is involved in a car accident with an uninsured driver?
Property damage liability
Uninsured motorist protection
Collision insurance
Bodily injury liability
Which of the following types of insurance is required when a car is financed or leased?
Comprehensive insurance
Bodily injury liability
Medical payments coverage
Property damage liability
Jason’s car needs a $1,500 repair and he has a $100 deductible with his auto insurance. How much will the insurance pay for the repair?
$100
$750
$1,400
$1,500
Allison’s insurance price decreased when she moved from the city to the country. Considering this example, the insurance price is affected by which of the following factors?
Amount of coverage
Vehicle type
Rating territory
Driver classification
An imported car costs more to insure because it has more expensive replacement parts. Considering this example, the insurance price is affected by which of the following factors?
Amount of coverage
Vehicle type
Rating territory
Driver classification
Which of the following types of insurance is applied when the policyholder damages the property of another person?
Property damage liability
Uninsured motorist protection
Collision insurance
Bodily injury liability
Which of the following is a coverage payoff which provides coverage beyond a vehicle's actual cash value?
Car loan payoff coverage
Extended warranty
Medical payments coverage
Property damage liability
