WGU C16 BUSINESS OF INSURANCE EXAM 2024
ACTUAL EXAM COMPLETE 250 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Written agreement between an individual and an insurance company - ANSWER:
Insurance
Insurer - ANSWER: insurance company
Individual - ANSWER: insured
what does the insurance states? - ANSWER: states that the insurance company will
pay money to the individual if that individual suffers a loss
The insured person must pay a fee to the insurance company. Because there are
many people paying these fees at the same time, the insurance company can afford
to pay an individual if they suffered a loss - ANSWER: risk pooling
Steps in Applying for Insurance - ANSWER: 1. Choosing the right insurance company -
choose exactly what do you want to insure
2. The Proposal Form - important to answer questions truthfully
3. The premium
4. The insurance documents
Person that sells insurance for a different number of companies - ANSWER:
insurance broker
Proposal form - ANSWER: Application form that must be filled in when applying for
Insurance cover.
Fee paid by the insured for insurance - ANSWER: Premium
2 types of insurance documents - ANSWER: insurance policy
certificate of insurance
Insurance policy - ANSWER: the insurance contract between the insured and the
insurer
Contains details of the insurance agreement - ANSWER: insurance policy
Proves that an insurance policy exists between the insurer and the insured -
ANSWER: certificate of insurance
Different types of Household insurance - ANSWER: Home insurance
, Life Assurance
Car insurance
Personal Insurance
Insurance that you must get if you are getting a mortgage - ANSWER: Home
insurance
Covers damage to the house itself - ANSWER: Building insurance
Contents Insurance - ANSWER: covers damage to or theft of the items inside the
house
Covers the loss or damage to person's belongings even when they are outside the
home - ANSWER: All risks insurance
Pay a sum of money to the policy holder's family in the event of their death -
ANSWER: Life assurance policy
Insurance that is important in allowing a household to continue paying its bills
should something happen to an income earner - ANSWER: Life assurance
Taken out for a certain period of time..pays out a lump sum if the insured person
dies within the agreed period of time - ANSWER: Term assurance
Pays out a lump sum when the insured person dies. - ANSWER: whole-life assurance
True or False : Whole life assurance premium is bigger than term assurance because
the insurer definitely has to pay out. - ANSWER: True
Pays out a lump sum when the insured person dies or reaches a certain age...can be
cashed in at an earlier date - ANSWER: Endowment assurance
Amount that can be cashed in at an earlier date for endowment assurance -
ANSWER: surrender value
Why is it called life assurance rather than life insurance? - ANSWER: The loss is
guaranteed ( assured) to take place
Car insurance - ANSWER: covers damage to and theft of
By law all drivers require this kind of insurance - ANSWER: car insurance
Covers damage to the policy holder's own car and to the other drivers car in the
event of of an accident - ANSWER: fully comprehensive insurance
True or False : Fully comprehensive insurance also covers the policy holder if their
car is stolen or damaged by fire. - ANSWER: True
ACTUAL EXAM COMPLETE 250 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
Written agreement between an individual and an insurance company - ANSWER:
Insurance
Insurer - ANSWER: insurance company
Individual - ANSWER: insured
what does the insurance states? - ANSWER: states that the insurance company will
pay money to the individual if that individual suffers a loss
The insured person must pay a fee to the insurance company. Because there are
many people paying these fees at the same time, the insurance company can afford
to pay an individual if they suffered a loss - ANSWER: risk pooling
Steps in Applying for Insurance - ANSWER: 1. Choosing the right insurance company -
choose exactly what do you want to insure
2. The Proposal Form - important to answer questions truthfully
3. The premium
4. The insurance documents
Person that sells insurance for a different number of companies - ANSWER:
insurance broker
Proposal form - ANSWER: Application form that must be filled in when applying for
Insurance cover.
Fee paid by the insured for insurance - ANSWER: Premium
2 types of insurance documents - ANSWER: insurance policy
certificate of insurance
Insurance policy - ANSWER: the insurance contract between the insured and the
insurer
Contains details of the insurance agreement - ANSWER: insurance policy
Proves that an insurance policy exists between the insurer and the insured -
ANSWER: certificate of insurance
Different types of Household insurance - ANSWER: Home insurance
, Life Assurance
Car insurance
Personal Insurance
Insurance that you must get if you are getting a mortgage - ANSWER: Home
insurance
Covers damage to the house itself - ANSWER: Building insurance
Contents Insurance - ANSWER: covers damage to or theft of the items inside the
house
Covers the loss or damage to person's belongings even when they are outside the
home - ANSWER: All risks insurance
Pay a sum of money to the policy holder's family in the event of their death -
ANSWER: Life assurance policy
Insurance that is important in allowing a household to continue paying its bills
should something happen to an income earner - ANSWER: Life assurance
Taken out for a certain period of time..pays out a lump sum if the insured person
dies within the agreed period of time - ANSWER: Term assurance
Pays out a lump sum when the insured person dies. - ANSWER: whole-life assurance
True or False : Whole life assurance premium is bigger than term assurance because
the insurer definitely has to pay out. - ANSWER: True
Pays out a lump sum when the insured person dies or reaches a certain age...can be
cashed in at an earlier date - ANSWER: Endowment assurance
Amount that can be cashed in at an earlier date for endowment assurance -
ANSWER: surrender value
Why is it called life assurance rather than life insurance? - ANSWER: The loss is
guaranteed ( assured) to take place
Car insurance - ANSWER: covers damage to and theft of
By law all drivers require this kind of insurance - ANSWER: car insurance
Covers damage to the policy holder's own car and to the other drivers car in the
event of of an accident - ANSWER: fully comprehensive insurance
True or False : Fully comprehensive insurance also covers the policy holder if their
car is stolen or damaged by fire. - ANSWER: True
