A. Basic Insurance Concepts & Principles

What is General Insurance?

Involves the practice of underwriting, pricing, and insuring risks to provide policyholders with financial protection against loss, damage, or liability.

What is Risk Management?

The process of identifying risks and implementing strategies to minimize their impact on individuals or organizations.

What is an Insurance Premium?

The amount paid by policyholders to maintain coverage, which varies based on risk factors and coverage level.

What are Deductibles?

The fixed amount that a policyholder must pay out-of-pocket before insurance coverage kicks in.

What are Coverage Limits?

The maximum amount an insurance company will pay for a covered loss.

What is Underwriting?

The evaluation process used by insurers to assess risk and determine premium amounts.

Who is a Policyholder?

An individual or entity that owns an insurance policy.

What is the Claims Process?

The procedure through which a policyholder requests payment for a covered loss, which involves filing a claim and providing relevant documentation.

What are Exclusions in insurance?

Specific conditions or circumstances not covered by an insurance policy.

What is Coinsurance?

A cost-sharing arrangement where both the insurer and insured share the covered expenses, typically expressed as a percentage.

What is Life Insurance?

Provides financial support to beneficiaries upon the policyholder's death.

What is Health Insurance?

Covers medical expenses and healthcare costs.

What is Property Insurance?

Protects against damage to or loss of property.

What is Liability Insurance?

Covers claims for damages or injuries caused to others by the policyholder.

What is Disability Insurance?

Provides income replacement for policyholders unable to work due to injury or illness.