PSI Ohio Insurance Practice Exam

What type of policy is typically designed to provide coverage regardless of situation or circumstance?

1. Comprehensive insurance

2. Basic insurance

3. Universal insurance

4. Standard insurance

The correct answer is: Comprehensive insurance

Comprehensive insurance is specifically crafted to offer extensive coverage that protects against a wide array of potential risks, regardless of the situation or circumstance. This means that it not only covers standard perils, such as theft or vandalism, but also provides protection from a multitude of other unforeseen events which may not be included in limited policies. Comprehensive insurance acts as an all-encompassing safety net, ensuring that the insured is safeguarded from many different scenarios that could result in financial loss. For instance, in the context of auto insurance, a comprehensive policy would cover damages from natural disasters, animal collisions, or other incidents that may not be related to direct traffic accidents. Other types of insurance, such as basic, universal, and standard, typically have limitations or specific exclusions that may not offer the same breadth of coverage. Basic insurance often covers only the essential risks and may require additional policies for more extensive protection. Universal insurance tends to refer to a flexible policy type in life insurance, allowing the insured to adjust premiums and coverage but does not inherently imply overall comprehensive coverage. Standard insurance, while it may include common protections, still typically has exclusions and limitations that comprehensive insurance does not.