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 (D)</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 (D)</p> Signup and view all the answers