business law & personal finance
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25 terms
Terms | Definitions |
|---|---|
 actuarial table | a table of premium rates based on ages and life expectancies |
| actuary | a specialist in insurance calculations and statistics. |
| Beneficiary | a person named on an insurance policy to receive the benefits from the policy. |
| benefits | sums of money to be paid for specific types of losses under the terms on an insurance policy. |
| cash value | the amount of money payable to a policyholder upon discontinuation of a life insurance policy. |
| claim | a policyholders request for reimbursement for a loss under the terms of an insurance policy. |
| coverage | protection provided by the terms of an insurance policy |
| deductible | the specified amount of a loss that the policyholder pays before the insurer is obligated to pay anything. the insurance company pays only the amount in excess of the deductible. |
| exclusions | specified losses that the insurance policy doesn't cover |
| face amount | the amount stated in a life insurance policy to be paid upon death. |
| grace period | the additional time after the premium due date that the insurer allows the policyholder to make the payment without penalty. |
| hazard | a condition that creates or increases the likeihood of some loss. |
| insurance agent | a professional insurance salesperson who acts for the insurer in negotiating, servicing,o writing an insurance policy. |
| insured | the person or company protected against loss(not always the owner of the policy.) |
| Loss | an unexpected reduction in value of the insureds property caused by a covered peril; the basis of a valid claim for reimbursement under the terms of an insurance policy. |
| peril | an event whose occurrence can cause a loss; people buy policies for protection against such perils as a fire,storm,explosion, accident or robbery. |
| proof of loss | the written verification of the amount of a loss that must be provided by the insured to the insurer before a claim can be settled. |
| Standard policy | the contract form that has been adopted by many insurers, approved by state insurance divisions, or prescribed by law (modifications are made to suit the needs of the individual) |
| unearned premium | the portion of a paid premium that the insurer has not yet earned because the policy term has not ended. The unearned premium is returned to the policyholder when a policy is canceled. |
| risk | is the chance of financial loss from perils to people or property. |
| Insurance | is a method for spreading individual risk among a large group of people to make types of insurance,including life, health,homeowners, and automobile. |
| Insurer | is a business that agrees to pay the cost of potential future losses in exchange for regular fee payments. |
| policy | purchasing a written insurance contract |
| premium | under a policy the insurer agrees to assume an identified risk for a fee |
| policy holder | usually paid at regular intervals by the intervals by the owner of the policy |
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