Claims handling and underwriting terminology tested on insurance licensing exams.
About this set
40 basic cards for Licensing exam Insurance. Set 2 of 2 in Insurance. It opens with "What is a request for payment under an insurance policy for a covered loss?" and "The amount the policyholder must pay out of pocket before insurance coverage". Study it alongside the other Licensing exam sets below.
40 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a request for payment under an insurance policy for a covered loss?
Show answer
A claim- The amount the policyholder must pay out of pocket before insurance coverage begins.
Show answer
Deductible- Cost-sharing arrangement where the policyholder pays a percentage of covered losses after the deductible.
Show answer
Coinsurance- A fixed dollar amount the policyholder pays for a covered service.
Show answer
Copay (copayment)- The protection provided by an insurance policy against specified losses.
Show answer
Coverage- A condition or circumstance not covered by an insurance policy.
Show answer
Exclusion- The process of evaluating and selecting risks to insure and determining appropriate premiums.
Show answer
Underwriting- The person responsible for evaluating insurance applications and setting premiums.
Show answer
Underwriter- The evaluation of the likelihood and severity of a potential loss.
Show answer
Risk assessment- The specific cause or event that may result in loss.
Show answer
Peril- A condition that increases the probability or severity of a peril.
Show answer
Hazard- The risk that a person may deliberately cause a loss to collect insurance.
Show answer
Moral hazard- The tendency of higher-risk individuals to seek insurance more readily than lower-risk individuals.
Show answer
Adverse selection- The legal requirement that the policyholder stands to suffer financial loss if the insured property is damaged.
Show answer
Insurable interest- The insurer's right to pursue a third party responsible for a loss to recover amounts paid.
Show answer
Subrogation
FlashKeepers