Insurance Key Terms to Know

What is the term for the contract between an insurance company and the insured individual?

• Coverage

• Policy

• Deductible

• Premium

What does 'Premium' refer to in insurance terms?

• The payments made each time medical service is received

• The amount of liability protection offered

• The formal request for compensation

• The amount of money paid for an insurance policy

What is a 'Deductible'?

• The amount paid out of pocket before the insurance company pays

• The financial protection received from an insurer

• The maximum amount a policyholder spends in a year

• The time after the premium is due to make a payment without penalty

What is the 'Grace Period' in insurance terms?

• The time to file a claim after an incident

• The maximum out-of-pocket expense limit

• The time after a premium is due to make a payment without coverage lapse

• The fixed amount paid for a medical service

What does 'Out-of-Pocket Maximum' mean?

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

• The highest deductible possible

• The limit on the amount of claims one can make

• The total premium paid annually

What is 'Co-insurance' in insurance terms?

• The fixed amount paid annually for health coverage

• The percentage of the medical bill shared between the insurer and the insured after the deductible is met

• The total amount a policyholder can claim for an incident

• The fee charged for changing a policy

What does 'Policyholder' refer to?

• The insurance company providing the policy

• The individual or entity that owns an insurance policy

• The beneficiary designated to receive the policy's proceeds

• The agent selling the insurance policy

What is 'Underwriting' in the context of insurance?

• The process of selling insurance policies

• The distribution of dividends to policyholders

• The process of evaluating and deciding the terms of insurance coverage

• The calculation of premium rates