Solved

Match the Term with Its Definition

Question 51

Matching

Match the term with its definition. Some terms may not be used.

Premises:

Responses:

Insurance that provides a healthy partner the cash to buy out a partner who becomes ill

Loss reduction

A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims

Indirect loss

A loss in which physical damage to property reduces its value to the property owner

Loss prevention

Lessening the frequency, severity, or unpredictability of potential losses

Specific stop loss limit

Choosing not to engage in hazardous activities

Actual cash value

A loss arising from an inability to carry on normal operations due to a direct loss of property

Direct loss

An insurance term that refers to the depreciated value of property

Disability buyout insurance

A firm's per-employee limit on self-funding for medical claims

Aggregate stop loss limit

The cost of replacing personal property and rebuilding real property at today's prices

Loss avoidance

Keeping a loss from happening

Disability insurance

Replacement value of property

Premises:

Insurance that provides a healthy partner the cash to buy out a partner who becomes ill

A comprehensive limit on annual expenses should a number of employees reach the firm's per-employee limit on self-funding for medical claims

A loss in which physical damage to property reduces its value to the property owner

Lessening the frequency, severity, or unpredictability of potential losses

Choosing not to engage in hazardous activities

A loss arising from an inability to carry on normal operations due to a direct loss of property

An insurance term that refers to the depreciated value of property

A firm's per-employee limit on self-funding for medical claims

The cost of replacing personal property and rebuilding real property at today's prices

Keeping a loss from happening

Responses:

Loss reduction

Indirect loss

Loss prevention

Specific stop loss limit

Actual cash value

Direct loss

Disability buyout insurance

Aggregate stop loss limit

Loss avoidance

Disability insurance

Replacement value of property

Correct Answer:

Premises:

Responses:

Loss reduction

Indirect loss

Loss prevention

Specific stop loss limit

Actual cash value

Direct loss

Disability buyout insurance

Aggregate stop loss limit

Loss avoidance

Disability insurance

Replacement value of property