Insurance Terminology TEST

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.

• Negligence
• 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