Insurance Terminology Quiz

Study Notes

Definitions of Key Insurance Terms

Accidental Bodily Injury: Refers to unintentional injuries that occur due to an accident, differentiating them from injuries resulting from illness.
Cafeteria Plan: An employee benefit program allowing participants to select from various benefits, catering to individual needs and preferences.
Cancellation: Describes the process wherein an ongoing insurance policy is terminated before its expiration date, initiated by either the policyholder or the insurer.
Comprehensive Coverage: Health insurance offering extensive protection, typically covering a wide range of medical expenses incurred by the insured.
Deductible: The initial out-of-pocket expense that the insured must pay for a claim before the insurance company contributes towards the benefits.
Lump Sum: A payment structure in insurance where the beneficiary receives the total benefit amount in one single payment rather than in installments.
Nonrenewal: Occurs when an insurance policy expires without an option for renewal or replacement, effectively terminating coverage at the end of the policy period.
Riders: Supplemental provisions added to a base insurance policy, allowing customization by modifying existing terms or adding new features.
Sickness: Defined as an illness that begins while the insurance policy is active, affecting the applicability of coverage.
Tax Exempt: Indicates income or benefits that are not liable for taxation under applicable tax laws.
Taxable: Refers to income or benefits that are subject to taxation, impacting the overall financial burden on the recipient.
Underwriting: The critical process of assessing risk factors and categorizing individuals for determining insurance policy terms and pricing.

Description

Test your knowledge of essential insurance terms with this quiz. Explore definitions such as accidental bodily injury, cafeteria plans, and more. Perfect for anyone looking to enhance their understanding of insurance concepts.