46
Unit 1 The World of Insurance
Review Your Knowledge
On a separate sheet of paper or in a word processing document, match the
following terms with the definition that fits best.
A. commercial general liability
insurance
B. cash value
C. property and casualty
insurance
D. replacement cost
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1. Coverage that replaces an insured item’s current market value.
2. A safety net that kicks in when the homeowner’s insurance reaches the
coverage limits.
3. General term for insurance that protects policyholders against financial
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7. Additional insurance coverage to increase the amount a policy would
typically pay.
8. An insurance policy for small business owners to provide property and
liability protection.
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On a separate sheet of paper or in a word processing document, answer
each of the following questions.
11. What is covered by the two basic components of “property” and
“casualty” insurance?
12. How is earthquake coverage handled for a homeowner’s insurance
policy?
13. Which type of insurance protects a small business against loss of
income due to the business closing for a period of time?
14. What does scheduling mean?
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F. business owner’s policy
insurance
G. depreciation
H. mortgage
I. endorsement
J. scheduling