Claims handling and underwriting terminology tested on insurance licensing exams.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a request for payment under an insurance policy for a covered loss?
- A claim
- The amount the policyholder must pay out of pocket before insurance coverage begins.
- Deductible
- Cost-sharing arrangement where the policyholder pays a percentage of covered losses after the deductible.
- Coinsurance
- A fixed dollar amount the policyholder pays for a covered service.
- Copay (copayment)
- The protection provided by an insurance policy against specified losses.
- Coverage
- A condition or circumstance not covered by an insurance policy.
- Exclusion
- The process of evaluating and selecting risks to insure and determining appropriate premiums.
- Underwriting
- The person responsible for evaluating insurance applications and setting premiums.
- Underwriter
- The evaluation of the likelihood and severity of a potential loss.
- Risk assessment
- The specific cause or event that may result in loss.
- Peril
- A condition that increases the probability or severity of a peril.
- Hazard
- The risk that a person may deliberately cause a loss to collect insurance.
- Moral hazard
- The tendency of higher-risk individuals to seek insurance more readily than lower-risk individuals.
- Adverse selection
- The legal requirement that the policyholder stands to suffer financial loss if the insured property is damaged.
- Insurable interest
- The insurer's right to pursue a third party responsible for a loss to recover amounts paid.
- Subrogation