Insurance Concepts Exam
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The basic concept of insurance is that one party, the insurer, will guarantee payment for an uncertain future event. Meanwhile, another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange for that protection on that uncertain future occurrence.

Insurance Concepts Exam
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1. Money paid by the insured to the insurer to purchase an insurance policy.
2. Auto insurance coverage that pays for physical injuries sustained by the insured and passengers in the insured's auto
3. Insurance that replaces income lost because of disability.
4. The payment made to life insurance beneficiaries upon the death of the insured.
5. An individual, usually but not always the buyer, covered by an insurance policy
6. Another name for permanent life insurance.
7. Life insurance that provides lifetime-long insurance protection
8. The specified amount of time during which benefits will be paid by a disability income policy.
9. An employer-sponsored retirement plan in which the employee, and usually the employer, makes payments into a fund that the employee manages
10. An option enabling the insured to exchange a term policy for a whole life policy without having to prove insurability.
11. Insurance that compensates a homeowner for damage to a home or its contents.
12. A government medical assistance program based on need
13. Auto insurance coverage for damage to a car from upset, overturn, or colliding with another object.
14. A form used to amend a property-liability insurance policy that reflects any changes to the standard policy.
15. An insurance plan under which all employees of the insured are covered by a single contract.
16. The reduction in the value of property as it gets older.
17. A type of insuring agreement where causes of loss are specified in the insurance policy
18. Coverage that pays for additional living expenses while repairs are made to a home or rental property that is uninhabitable because of a loss
19. An insurance agent who sells the products of several different companies
20. The likelihood that an event will occur
21. Term insurance contracts generally do not have:
22. The amount an insured pays on a claim before the insurer pays the remainder.
23. The theory of probability that is the basis for insurance, and which states that the larger the number of exposure units, the more closely the actual results obtained will approach the probable results expected.
24. Insurance covering the cost of extended care of people who have difficulty with basic daily activities
25. A government medical insurance program for retired and/or disabled persons

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