Insurance Review

Front

What is the main purpose of insurance?

Back

To reduce risk.

Front

What happens to your auto insurance premium if you get into multiple accidents within one year?

Back

Your premium amount will increase.

Front

What is an insurance premium?

Back

Your monthly payment to your insurer, regardless of whether you use any services.

Front

Which of the following is NOT covered by a standard homeowner's insurance policy?

Back

Damage to a car parked in the driveway.

Front

What type of auto insurance coverage helps cover the cost to replace a broken window due to a break-in?

Back

Comprehensive.

Front

What is the difference between liability and comprehensive coverage in auto insurance?

Back

Liability covers damages to others; comprehensive covers damages to your own vehicle from non-collision events.

Front

What is a deductible in insurance terms?

Back

The amount you pay out-of-pocket before your insurance coverage kicks in.

Front

What is the role of an insurance adjuster?

Back

To evaluate insurance claims and determine the amount the insurer should pay.

Front

What is the significance of the insurance policy limit?

Back

It is the maximum amount an insurer will pay for a covered loss.

Front

What does 'underwriting' mean in the context of insurance?

Back

The process of evaluating risk and determining the terms of insurance coverage.