C.26 Insurance policy and company selection Flashcards

The process an insurance company uses to evaluate risk and determine coverage eligibility, pricing, and policy terms.

Specific conditions, circumstances, or events that are not covered under an insurance policy.

Optional policy add-ons that provide additional coverage or modify standard policy terms for an extra cost.

The procedure policyholders follow to request payment for covered losses from their insurance provider.

An assessment of an insurance company’s ability to meet its financial obligations, typically rated by agencies like A.M. Best or Moody’s.

The termination of an insurance policy due to non-payment of premiums, resulting in loss of coverage.

Pays the cost to replace a lost or damaged item without depreciation.

Pays the depreciated value of the lost or damaged item.

A policy that allows the insured to renew coverage without re-evaluation, as long as premiums are paid, but costs may increase.

Pays dividends to policyholders based on the insurer’s financial performance.

Does not pay dividends, offering fixed premiums instead.

The individual or entity that receives policy benefits if the primary beneficiary is deceased or unable to claim the proceeds.