The amount "used" actually would be the expense. So in a way, you're contradicting yourself. You're right that it didn't ask for the amount used -- it therefore also is not asking for the amount of the expense.
It asked for the amount of **cash paid** for insurance for the current year.
You have to think about how the account works: You add new purchases of insurance (which you paid for), and subtract out the amount that got used up (the expense), and you end up with an ending balance.
Does that help clear it up? I prefer solving these with t accounts, entering what I already known, and then trying to solve for the missing numbers by doing some backwards work. |