Insurance Glossary Quiz

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Questions and Answers

What is the definition of 'Actual cash value' in the context of insurance?

The price someone would pay to purchase a brand new vehicle
The estimated worth of a vehicle based on its age, condition, and other factors (correct)
The value of a vehicle after it has been fully depreciated
The value of a vehicle including any prior damage, improvements, or special equipment

What is an 'Anti-theft device' in the context of insurance?

A device that records video footage in case of a theft
A device that automatically contacts emergency services in case of a theft
A device that activates airbags in the event of a theft
A device that prevents vehicle theft using car alarms or steering wheel locks (correct)

In insurance, who can be added to a policy as an 'Additional insured'?

Someone who has previously made an insurance claim
The primary driver of the insured vehicle
A company or person who may be liable for an accident involving an insured person or vehicle (correct)
Any individual who has taken out an insurance policy

What does 'Any Auto coverage' provide in the context of insurance?

Liability insurance for any hired or non-owned cars and vehicles during the policy term (A) Signup and view all the answers

What does Bobtail coverage protect?

A tractor when it's operated without a trailer (D) Signup and view all the answers

What is the purpose of Bodily Injury Liability coverage (BI)?

Pays for injuries/death to people involved in an accident (B) Signup and view all the answers

What is the definition of a commercial vehicle?

Any vehicle used for business purposes (C) Signup and view all the answers

What does Comprehensive coverage with full glass protection pay for?

Replacement of windows or windshield due to a non-collision incident (D) Signup and view all the answers

What is Combined Single Limit (CSL) in insurance terminology?

The predetermined limit for combined Bodily Injury Liability and Property Damage Liability coverage per occurrence or accident (D) Signup and view all the answers