BF22 – 1.04 Insurance Terms Quiz

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What is the main responsibility of an insurance carrier?

Assuming the risk covered in policies (correct)

Processing insurance claims

Selling insurance policies

Providing reinsurance

Which term refers to insurance that is purchased by an insurance company to pass on some of its insurance liabilities to another company?

Claims Adjuster

Exclusion

Standard Insurance

Reinsurance (correct)

What do exclusions do in an insurance policy?

Extend the scope of coverage

Eliminate coverage for certain risks (correct)

Provide additional coverage

Reduce premiums for the policyholder

A claims adjuster's main role involves:

Investigating insurance claims to determine liability Signup and view all the answers

What is the primary focus of a claims processor's job?

Analyze and process insurance claims Signup and view all the answers

Property/Casualty insurance primarily helps protect against:

Property damage and liability exposure Signup and view all the answers

In the insurance industry, what does Standard Insurance refer to?

Insurance with standardized limitations and exceptions Signup and view all the answers

'Claims Processor' typically works in collaboration with:

Doctors' offices and insurance companies Signup and view all the answers

What is the primary function of reinsurance in the insurance industry?

To help insurance carriers manage risk by passing on some of their liabilities to other companies Signup and view all the answers

How do independent claims adjusters differ from claims processors in the insurance industry?

Independent claims adjusters are employed by insurance carriers, while claims processors are third-party service providers Signup and view all the answers

What distinguishes captive insurance companies from standard insurance companies?

Captive insurance companies insure only their parent company's risks, while standard insurance companies offer policies to external clients Signup and view all the answers

What purpose do exclusions serve in an insurance policy?

To limit the coverage provided by the policy Signup and view all the answers

Which statement best describes the role of claims adjusters in the insurance industry?

Claims adjusters assess, investigate, and negotiate settlements for insurance claims Signup and view all the answers

In what way do excess insurance companies differ from standard insurance companies?

Excess insurance companies provide coverage beyond the limits of standard policies Signup and view all the answers

Why do insurance carriers often rely on reinsurance in the industry?

To reduce their claim payouts Signup and view all the answers

What distinguishes property/casualty insurance from life insurance in terms of coverage?

Property/casualty insurance covers assets like homes and cars, whereas life insurance provides financial protection upon death Signup and view all the answers

What is a common disadvantage associated with standard insurance companies?

The cost of premiums is typically higher than competitors Signup and view all the answers

What defines excess insurance companies in terms of coverage?

They only cover risks up to the standard policy limits before kicking in as a second layer of protection Signup and view all the answers

BF22 – 1.04 Insurance Terms Quiz

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