Insurance Terminology

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Date:

Instructions: Navigate the world of insurance with this quiz on policy terms, coverage types, and industry jargon.

1.
What is a 'deductible' in insurance?
A
A discount on your premium
B
The maximum amount an insurer will pay
C
A tax write-off for having insurance
D
The amount you must pay out of pocket before insurance coverage kicks in
2.
What does 'premium' mean in insurance?
A
The best type of coverage
B
The total value of a claim
C
The regular payment made to keep an insurance policy active
D
A bonus from your insurance company
3.
What is an 'actuary'?
A
An insurance salesperson
B
An insurance company executive
C
A professional who uses mathematics and statistics to assess risk and set premiums
D
A claims adjuster
4.
What does 'indemnity' mean in insurance?
A
A type of life insurance
B
A penalty for filing too many claims
C
An insurance policy for businesses
D
Compensation for loss or damage, restoring the insured to their pre-loss financial position
5.
What is a 'rider' on an insurance policy?
A
The person who delivers the policy
B
An amendment or addition that modifies the terms of the base policy
C
The primary policyholder
D
A motorcycle insurance requirement
6.
What does 'liability' coverage protect against?
A
Natural disasters
B
Damage to your own property
C
Claims made against you for causing injury or damage to others
D
Theft of your belongings
7.
What is 'subrogation' in insurance?
A
The insurer's right to pursue a third party that caused a loss to recover the amount paid on a claim
B
Transferring a policy to another person
C
Submitting a claim
D
Canceling a policy
8.
What does 'co-pay' mean in health insurance?
A
Splitting an insurance policy with a friend
B
The employer's share of insurance costs
C
A copyrighted insurance plan
D
A fixed amount you pay for a covered healthcare service at the time of service
9.
What is an 'exclusion' in an insurance policy?
A
Being denied insurance entirely
B
A premium discount for good behavior
C
A waiting period before coverage begins
D
A specific condition or circumstance not covered by the policy
10.
What does 'underwriter' mean in insurance?
A
The author of insurance regulations
B
A claims processor
C
Someone who writes policy documents
D
A person who evaluates risk and decides whether to accept or reject insurance applications
11.
What is a 'beneficiary'?
A
The person designated to receive the proceeds of an insurance policy
B
The company providing insurance
C
The insurance agent
D
A witness to the policy signing
12.
What does 'aggregate limit' mean?
A
The minimum claim amount
B
The maximum total amount an insurer will pay for all claims during a policy period
C
The monthly premium cap
D
The deductible amount
13.
What is 'comprehensive coverage' in auto insurance?
A
Coverage for non-collision damage such as theft, vandalism, weather, and animal strikes
B
Coverage for all drivers in a household
C
Coverage only for collisions
D
The most basic liability coverage
14.
What does 'grace period' mean in insurance?
A
The time to shop for a new policy
B
A waiting period before claims can be filed
C
A period of free insurance
D
Extra time after a premium due date during which the policy remains in effect
15.
What is a 'claim' in insurance?
A
A statement that you own a policy
B
A lawsuit against an insurer
C
A formal request to an insurance company for payment based on the terms of the policy
D
A quote for a new policy

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