Insurance Vocabulary/Knowledge Check

Match the following words with their definitions

• Policy Holder

• an event which can cause a financial loss like fire, falling trees, lightning, accident, etc

• Policy

• the person who purchases the policy

• Risk Factor

• a contract between the individual and the insurance company. It states the terms of the insurance arrangement/agreement

• Insurance

• something that increases the likelihood that a particular event will happen

• Peril

• an agreement intended to protect an individual against financial loss.

Match the following

• Claim

• a person who relies on someone else financially

• Dependent

• a fee paid to the insurance company for providing the insurance

• Coverage

• the person who receives the money is the insured person dies

• Premium

• what is protected and by what amount for specific losses provided under the terms of an insurance policy

• Beneficiary

• a request from the policy holder for insurance to cover an event

Match the following

• Copay

• the amount that must be paid out of pocket by the policy holder. After the policy holder pays the deductible, the insurance company will pay the rest

• Co-insurance

• the period of time specified in an insurance policy that must pass before coverage can begin

• Limit

• a fixed amount of money that an insured pays for a covered medical service or prescription

• Waiting Period

• the maximum amount an insurance company will pay for a loss

• Deductible

• requires the insured person to pay a fixed percentage of loss after the deductible has been paid

What is an event which can cause financial loss?

• Peril

• Risk Factor

• Claim

• Limit

What is something that increases the likelihood that a particular event will happen?

• Peril

• Risk Factor

• Claim

• Limit

What is the fee paid to an insurance company for the privilege of having insurance coverage?

• Claim

• Premium

• Limit

• Coverage

When you have a loss, you should file a(n) ________ with your insurance company.

• Peril

• Premium

• Claim

• Waiting Period

What is the contract between you and an insurance company?

• Policyholder

• Beneficiary

• Dependent

• Policy

What is a maximum amount set by a policy that an insurance company will pay for a loss?

• Benefit

• Deductible

• Limit

• Coinsurance

What is the amount that must be paid on a claim by the insured before any insurance proceeds are distributed?

• Deductible

• Peril

• Claim

• Limit