Podcast
Questions and Answers
An amount to be paid for an insurance policy is called a ______
An amount to be paid for an insurance policy is called a ______
premium
A situation involving exposure to danger, harm, or loss is known as a ______
A situation involving exposure to danger, harm, or loss is known as a ______
risk
The action of reducing the severity, seriousness, or painfulness of something is called ______
The action of reducing the severity, seriousness, or painfulness of something is called ______
mitigation
Any form of insurance which is required by law is known as compulsory ______
Any form of insurance which is required by law is known as compulsory ______
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The insurer agrees to pay no more than the actual amount of the loss under the ______
The insurer agrees to pay no more than the actual amount of the loss under the ______
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Study Notes
Insurance Terminology
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An amount paid for an insurance policy is called a premium. This is typically paid regularly to maintain coverage.
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A situation involving exposure to danger, harm, or loss is known as a risk. Understanding risks is crucial for effective risk management and insurance planning.
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The action of reducing the severity, seriousness, or painfulness of something is referred to as mitigation. This involves strategies and actions taken to minimize potential losses or damages.
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Any form of insurance that is required by law is termed compulsory insurance. This is mandated to protect individuals and society, ensuring that everyone has a baseline level of coverage.
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The insurer agrees to pay no more than the actual amount of the loss under the principle of indemnity. This principle ensures that the insured is restored to their financial position before the loss occurred, without making a profit from the claim.
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Description
Test your knowledge of insurance terms with this quiz! From understanding what a claim and deductible are, to grasping the concepts of risk and mitigation, and knowing the importance of premiums, this quiz will help you brush up on your insurance vocabulary.
