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Quiz about Insurance Terminology
Quiz about Insurance Terminology

Insurance Terminology Trivia Quiz


Almost everyone has it, but not enough people understand it. I'll give you some basic insurance related terms and concepts as they relate to insurance in the United States. All questions will be multiple choice.

A multiple-choice quiz by MisterE76. Estimated time: 7 mins.
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Author
MisterE76
Time
7 mins
Type
Multiple Choice
Quiz #
57,770
Updated
Dec 03 21
# Qns
25
Difficulty
Tough
Avg Score
13 / 25
Plays
1405
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Question 1 of 25
1. You just endorsed your insurance policy, what have you done to it? Hint


Question 2 of 25
2. The declarations page of your auto policy states that your liability coverages are 100 300 100. What coverage does the last figure represent? Hint


Question 3 of 25
3. Your standard unendorsed plain-vanilla homeowner's insurance policy carries a $1,000 deductible. It does not cover earthquakes. An earthquake causes $6,300 in damage to your home. How much would your insurance company pay for the cost of repairs? Hint


Question 4 of 25
4. The medical payments portion of your automobile policy (Coverage B) provides protection for who? Hint


Question 5 of 25
5. A bunch of items are stolen from your vehicle. They are valued at $4,800. In the USA, under what type of policy listed would this loss be covered? Hint


Question 6 of 25
6. I'll give you the definition, you tell me what I'm describing. The principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he or she occupied before the loss occurred, no better or no worse. Hint


Question 7 of 25
7. Another definition. The cost to replace an item of property at the time of loss, less an allowance for depreciation. Hint


Question 8 of 25
8. Which of the following is not a characteristic of a valid contract, which an insurance policy is? Hint


Question 9 of 25
9. A mutual insurance company is owned by who? Hint


Question 10 of 25
10. You were in an accident that is not your fault. The other party either has no insurance or refuses to pay. Your insurance company pays for your damages and then has the right to go after the liable party for compensation. This is referred to as what? Hint


Question 11 of 25
11. Your gun collection is stolen from the gun cabinet in your home. The stolen items have a combined total value of $4500. Assuming your policy does not have a firearm exclusion nor any limits on firearm payments, how much will your insurance company pay for this loss if you have a $1000 deductible? Hint


Question 12 of 25
12. You own the home, but you rent it to others. What type of policy do you need? Hint


Question 13 of 25
13. What do you call a condition or situation that presents a possibility of loss? Hint


Question 14 of 25
14. There is a section in any insurance policy which clarifies the meaning of certain terms used in the policy. What is this section referred to as? Hint


Question 15 of 25
15. What two coverages are typically provided in Aviation policies? Hint


Question 16 of 25
16. In a commercial auto policy, a motor carrier can be covered under the Truckers coverage form, when? Hint


Question 17 of 25
17. This is a written form that verifies a policy has been written. It provides a summary of the coverage provided under the policy. What is it called? Hint


Question 18 of 25
18. In most states, the signature of a licensed agent must appear on the policy to validate the contract. What is this concept called? Hint


Question 19 of 25
19. This Ocean Marine insurance provides coverage for physical damage to a ship, what is it called? Hint


Question 20 of 25
20. Which of these is not an insurance company? Hint


Question 21 of 25
21. An insurance company that only writes one line of business is known as a what? Hint


Question 22 of 25
22. This general term is used to describe policy conditions that specify what the insured and insurer must do after a loss. Hint


Question 23 of 25
23. In commercial insurance, this is the vanishing of property with no explanation. Hint


Question 24 of 25
24. Your policy coverages begin and end on a certain date. What is this referred to as? Hint


Question 25 of 25
25. This organization rates the financial stability of insurance companies doing business in the United States. Hint



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Quiz Answer Key and Fun Facts
1. You just endorsed your insurance policy, what have you done to it?

Answer: Changed

An endorsement is something that changes the policy in some way.
2. The declarations page of your auto policy states that your liability coverages are 100 300 100. What coverage does the last figure represent?

Answer: Property Damage

The 100 300 is that amount that would be paid towards personal injuries of others if you were found liable in an automobile accident. The last 100 is what would be covered towards the property of others due to your liability. Comprehensive and Collision cover your own vehicle.
3. Your standard unendorsed plain-vanilla homeowner's insurance policy carries a $1,000 deductible. It does not cover earthquakes. An earthquake causes $6,300 in damage to your home. How much would your insurance company pay for the cost of repairs?

Answer: Nothing

Earthquakes are not part of standard homeowner's policies. It is a separate policy that is purchased or an endorsed coverage that can be added to the policy.
4. The medical payments portion of your automobile policy (Coverage B) provides protection for who?

Answer: You and your passengers

Bodily injuries of others is covered in your liability. Medical payments covers you, your family, and your passengers.
5. A bunch of items are stolen from your vehicle. They are valued at $4,800. In the USA, under what type of policy listed would this loss be covered?

Answer: Homeowner's

Personal property is not covered by an automobile policy. Items in your vehicle are covered by a homeowner's or renter's policy under the Personal Property coverage.
6. I'll give you the definition, you tell me what I'm describing. The principle of insurance that provides that when a loss occurs, the insured should be restored to the approximate financial condition he or she occupied before the loss occurred, no better or no worse.

Answer: Indemnity

7. Another definition. The cost to replace an item of property at the time of loss, less an allowance for depreciation.

Answer: Actual Cash Value

Replacement cost coverage does not deduct for depreciation.
8. Which of the following is not a characteristic of a valid contract, which an insurance policy is?

Answer: Must be written

Although a contract is usually written, it may be oral as well. Consideration is the fourth portion of a contract required to make it legally enforceable.
9. A mutual insurance company is owned by who?

Answer: Insureds

10. You were in an accident that is not your fault. The other party either has no insurance or refuses to pay. Your insurance company pays for your damages and then has the right to go after the liable party for compensation. This is referred to as what?

Answer: Subrogation

11. Your gun collection is stolen from the gun cabinet in your home. The stolen items have a combined total value of $4500. Assuming your policy does not have a firearm exclusion nor any limits on firearm payments, how much will your insurance company pay for this loss if you have a $1000 deductible?

Answer: $2500

Firearms have a $2000 coverage limit as pertaining to theft.
12. You own the home, but you rent it to others. What type of policy do you need?

Answer: Dwelling Fire

A dwelling fire policy covers the home itself, limited contents coverage, and liability insurance. As you are renting the home to others, a homeowners policy would not be appropriate. The renter should take out a renters policy to cover their personal property against a loss.
13. What do you call a condition or situation that presents a possibility of loss?

Answer: Exposure

14. There is a section in any insurance policy which clarifies the meaning of certain terms used in the policy. What is this section referred to as?

Answer: Definitions

15. What two coverages are typically provided in Aviation policies?

Answer: Physical Damage and Liability

The same as the basic coverages in an auto policy. The most significant difference between the two is the high dollar exposure to loss with an aircraft.
16. In a commercial auto policy, a motor carrier can be covered under the Truckers coverage form, when?

Answer: If they transport goods for others by hire

17. This is a written form that verifies a policy has been written. It provides a summary of the coverage provided under the policy. What is it called?

Answer: Certificate of Insurance

18. In most states, the signature of a licensed agent must appear on the policy to validate the contract. What is this concept called?

Answer: Countersignature

19. This Ocean Marine insurance provides coverage for physical damage to a ship, what is it called?

Answer: Hull Insurance

20. Which of these is not an insurance company?

Answer: Lloyd's of London

Lloyd's is a voluntary association of individuals or groups of individuals who agree to share in insurance contracts.
21. An insurance company that only writes one line of business is known as a what?

Answer: Mono-Line Company

22. This general term is used to describe policy conditions that specify what the insured and insurer must do after a loss.

Answer: Loss Provisions

23. In commercial insurance, this is the vanishing of property with no explanation.

Answer: Mysterious Disappearance

24. Your policy coverages begin and end on a certain date. What is this referred to as?

Answer: Policy Period

25. This organization rates the financial stability of insurance companies doing business in the United States.

Answer: Standard and Poor

S and P is a fairly well known organization.
Source: Author MisterE76

This quiz was reviewed by FunTrivia editor gtho4 before going online.
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