Insurance Terminology Quiz

A risk that is not insurable

A risk with a chance of loss or gain

A risk that is not covered by a policy

A risk with no chance of gain (correct)

The purpose of the policy is to prevent losses

The purpose of the policy is to transfer risk from the insurer to the insured

The purpose of the policy is to provide coverage for all losses

The purpose of the policy is to restore the insured financially to where they were prior to their loss (correct)

A temporary contract that provides coverage until the policy is issued (correct)

A provision that obligates the insured to promptly report a claim to the insurer

An agreement between the insurer and the insured to resolve disputes in arbitration

A clause that lists the perils that are not covered

<p>A law that protects consumers against the circulation of inaccurate or obsolete personal or financial information</p> Signup and view all the answers

<p>It is also known as the pro-rata liability clause and it means that the liability is proportionate to the amount of insurance provided by each policy</p> Signup and view all the answers