| Term | Definition |
|---|
| insurance | is protection against possible financial loss. |
| insurace company or insurer | risk sharing business that agrees to pay for losses that may happen to someone it insures. |
| policy | person joins the risk sharing group by purchasing a contract. |
| policyholder | purchaser of the policy |
| premium | fee paid by a policy. |
| coverage | the protection provided by the terms of an insurance policy. |
| insured. | a person or persons protected by an insurance policy. |
| risk | is the chance of loss or injury. |
| peril | is anything that may possibly cause a loss. |
| hazard | is anything that increase the likelihood of loss through some peril. |
| negligence | is the falilure to take ordinary or reasonable care to prevent accidents from happening. |
| deductible | is the set amount that the policyholder must pay per loss on an insurance policy. |
| claims | or requests for payment to cover financial losses. |
| liability | is legal responsibility for the financial cost of another person's losses or injuries. |
| Homeowners insurance | is coverage that provides protection for your residence and its associated financial risks, such as damage to personal property and injuries. |
| household inventory | is a list or other documentation of personal belongings, with purchase dates and cost information. |
| personal property floater | is additional property insurance that covers the damage or loss of a specific item of high value. |
| umbrella policy | personal catastrophe policy, supplements your basic personal liability coverage. |
| medical payment coverage | pays the cost of minor accidental injuries to visitors on your property. |
| endorsement | addition of coverage to a homeowners policy or though a state-run insurace program. |
| actual cash value | (ACV) method , the payment you receive is based on the replacement cost of an item minus depreciation. |
| replacement value | method for setting claims you receive the full cost of repairing or replacing an item. |
| financial responsibility law | is insurance that covers physical injuries caused by an automobile accident for which you were responsible. |
| bodfily injury liability | is insurance that covers physical injuries caused by an automobile accident for which you were responsible |
| medical payments coverage | is insurance that applies to the medical expenses of anyone who is injured in your auomobile including you. |
| uninsured motorist's protection | is insurance that covers you and your family memebers if you are involved ina n accident with an uninsured or hit-and run driver. |
| property damage liability | is automobile insurance that applies when you damage the property of other. |
| collision | insurance covers damage to your car when it is involved in an accident. |
| no-fault | car is damaged in a nonacciddent situation. |
| assigned risk pool | includes all the people are assigned to each insurance company operating in the state. |
Combine with other sets
Share on Facebook
Share on MySpace