Vehicle insurance 08

Question 1

1. INDEMNITY

Answer 1

Compensation for a loss intended to restore an individual or entity to the approximate financial position prior to the loss.

Question 2

2. INSURABLE INSTEREST

Answer 2

Exists when an individual would suffer an economic loss as the result of damage to property or bodily injury.

Question 3

3. INSURANCE

Answer 3

Insurance is a system in which groups of people who have similar chances of suffering a loss transfer their risk of loss to an insurer who pools the risk of many people together. In exchange for payment of premium the insurer promises to reimburse the person for their covered losses.

Question 4

4. INSURANCE SCORE.

Answer 4

Used in underwriting process in some states. An individual’s insurance score is frequently based, in part, on a person’s credit history.

Question 5

5. LEGAL LIABILITY

Answer 5

Liability imposed by law, as opposed to liability arising from an agreement or contract.

Question 6

6. LIABILITY INSURANCE

Answer 6

Insurance that provides protection from claims arising from injuries or damage to other people or property

Question 7

7. LIEN

Answer 7

A claim charge, or encumbrance on property as a security for the payment of a debt.

Question 8

8. LIENHOLDER.

Answer 8

A person or organization with a financial interest in property up to the amount of money borrowed or still owed on the property.

Question 9

9. LIMIT

Answer 9

The maximum amount of protection purchased by the insured for a specific coverage.