Insurance Terminology Quiz

What is a deductible in insurance terminology?

• The amount paid by the insurer before the policy kicks in

• The amount paid by the insured before the policy kicks in

• The total cost of the insurance policy

• The monthly payment for the insurance policy

Which of the following is a method of risk management?

• Risk avoidance

• Risk creation

• Risk enhancement

• Risk elimination

Who is a beneficiary in an insurance policy?

• The person who sells the insurance

• The person who receives the insurance benefits

• The person who pays the insurance premium

• The person who underwrites the insurance

What does the term 'premium' refer to in insurance?

• The total coverage amount

• The monthly or annual payment for the insurance policy

• The deductible amount

• The claim amount

What is insurance?

• A savings account for future expenses

• A contract for financial protection against losses

• A loan from a bank

• A method to increase wealth quickly

What is the key purpose of insurance?

• To increase profits

• To manage risk and provide financial security

• To avoid paying taxes

• To eliminate all financial risks

Why is insurance important in personal finance and business operations?

• It guarantees profit

• It provides entertainment

• It offers financial protection and risk management

• It eliminates the need for budgeting

Tags

CCSS.HSS.MD.B.6

What is a formal request for payment from an insurance company called?

• Beneficiary

• Deductible

• Claim

• Premium

Who is the person or entity designated to receive insurance benefits?

• Policyholder

• Beneficiary

• Insurer

• Claimant

What is the term for the amount the policyholder must pay before insurance coverage begins?

• Premium

• Deductible

• Claim

• Policy