UNIT 7 INSURANCE VOCABULARY EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026
Automobile Collision insurance - Answers Provides for the repair or replacement of the policy owner's
car damaged in an accident
Deductible - Answers The amount you must pay before the insurance company pays their part.
Term - Answers Type of life insurance that only applies for a specified period of time, usually maxing
out at 30 years.
Shared Liability - Answers This is why you have to pay a percentage of the damages before they pay.
The Fair Debt Collection Practices Act - Answers This Act sets the guidelines for behaviors debt
collectors can use to try to get money from people.
The Dodd-Frank Act - Answers This Act was designed to address some of the many financial practices
that contributed to the 2008 economic collapse.
Dumpster diving - Answers This type of identity theft involves going through someone's trash.
Skimming - Answers This type of identity theft involves refers to the practice of swiping a credit or
debit card and storing the information to sell to thieves at a later date.
Phishing - Answers This type of identity theft involves using faulty premises to get people to
voluntarily hand over information.
Ponzi Scheme - Answers This scam occurs when the scammer collects money from someone
promising to invest in a fictional business and guaranteeing them a quick return on investment.
Advance-Fee Scam - Answers This scam occurs when the scammer promises an opportunity to make
large sums of money in the future if the victim buys in now.
Pump and Dump - Answers This scam occurs when the scammer the holders aggressively call, e-mail,
take out ads, or otherwise attempt to quickly bolster the stocks credibility in the market.
The Fair Housing Act - Answers This Act prohibits housing discrimination on the basis of race, color,
religion, sex, disability, familial status, or national origin.
Truth in Lending Act - Answers This Act forces creditors to make all the terms of a loan available to the
borrower prior to the loan being finalized.
Automobile Comprehensive insurance - Answers Covers the cost of damage to an auto as a result of
fire, theft, or storms
Automobile Liability insurance - Answers Covers the cost of property damage or injuries to others
caused by the policy owner involving an automobile
Health insurance - Answers Provides payment for certain health-care costs
Rental Insurance - Answers Reimburses policy owner for loss of possessions in a rental unit due to
fire, theft, water damage, etc.
Comprehensive insurance - Answers Protects against loss from a lawsuit for injuries to invited or
uninvited guests into homeowners house.
Disability insurance - Answers Provides income over a specified period when a person is ill or unable
to work.
Automobile Collision insurance - Answers Provides for the repair or replacement of the policy owner's
car damaged in an accident
Deductible - Answers The amount you must pay before the insurance company pays their part.
Term - Answers Type of life insurance that only applies for a specified period of time, usually maxing
out at 30 years.
Shared Liability - Answers This is why you have to pay a percentage of the damages before they pay.
The Fair Debt Collection Practices Act - Answers This Act sets the guidelines for behaviors debt
collectors can use to try to get money from people.
The Dodd-Frank Act - Answers This Act was designed to address some of the many financial practices
that contributed to the 2008 economic collapse.
Dumpster diving - Answers This type of identity theft involves going through someone's trash.
Skimming - Answers This type of identity theft involves refers to the practice of swiping a credit or
debit card and storing the information to sell to thieves at a later date.
Phishing - Answers This type of identity theft involves using faulty premises to get people to
voluntarily hand over information.
Ponzi Scheme - Answers This scam occurs when the scammer collects money from someone
promising to invest in a fictional business and guaranteeing them a quick return on investment.
Advance-Fee Scam - Answers This scam occurs when the scammer promises an opportunity to make
large sums of money in the future if the victim buys in now.
Pump and Dump - Answers This scam occurs when the scammer the holders aggressively call, e-mail,
take out ads, or otherwise attempt to quickly bolster the stocks credibility in the market.
The Fair Housing Act - Answers This Act prohibits housing discrimination on the basis of race, color,
religion, sex, disability, familial status, or national origin.
Truth in Lending Act - Answers This Act forces creditors to make all the terms of a loan available to the
borrower prior to the loan being finalized.
Automobile Comprehensive insurance - Answers Covers the cost of damage to an auto as a result of
fire, theft, or storms
Automobile Liability insurance - Answers Covers the cost of property damage or injuries to others
caused by the policy owner involving an automobile
Health insurance - Answers Provides payment for certain health-care costs
Rental Insurance - Answers Reimburses policy owner for loss of possessions in a rental unit due to
fire, theft, water damage, etc.
Comprehensive insurance - Answers Protects against loss from a lawsuit for injuries to invited or
uninvited guests into homeowners house.
Disability insurance - Answers Provides income over a specified period when a person is ill or unable
to work.
