Insurance QuestionsDefine/answer the following:1. Premium2. Deductible3. Independent agent4. Captive agent5. How do you know if an insurance company is financially sound?Auto6. What factors or variables influence the price of auto insurance?7. The primary kinds of coverage for a vehicle are listed below. Define eacha. Liabilityi. Bodily injuryii. Property damageb. Medical paymentsc. Uninsured Motorist (UM)d. Collisione. Comprehensive coverage8. What does “250/500/250” mean? How much liability should you have?9. When should you NOT purchase comprehensive and collision insurance?Disability and Health 10. What is disability insurance? Who needs it?11. True or False. At age 25, you are more likely to become disabled than die.12. Which of the following are important things to know about a disability insurance policya. How is disability defined?b. The elimination period: how long you have to wait before benefits are paid.c. Does the elimination period apply if you have a re-occurrence of the same disabling condition that put you on disability before?d. Is the policy guaranteed renewable?13. What is the difference between “owner’s occupation” and “any occupation”14. What is health insurance? Who needs it?15. What is a flexible spending account (FSA)? What is the main benefit?Homeowner’s Insurance16. What should homeowner’s insurance cover?17. Compare “actual cash value policy” with “replacement cost policy”18. Define “loss of use” protectionLife Insurance19. When do you need life insurance?20. How should you determine how much life insurance to buy?21. One rule of thumb is to purchase $100,000 in life insurance for every $500 of monthly cash flow needs. Is this a good rule-of-thumb? Explain22. What is the difference between term and cash-value (whole, universal, and variable) life insurance? 23. Is term or cash-value best for most people? 24. Definea. level term b. guaranteed-renewable termc. decreasing