Unit 5 Insurance Test
Terms in this set (40)
the amount of money payable to a policyholder upon discontinuation of a whole-life insurance policy
unexpected reduction in the value of an insured's property caused by a covered peril
the person protected against loss
when a policyholder makes a request for payment under the terms of an insurance policy
the amount stated in a life insurance policy to be paid upon death
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
a contract issued by the insurance company
a person who sells insurance
sums of money to be paid for specific types of losses under the terms of an insurance policy
fire, water, wind, smoke (risk)
an event that could cause a loss like fire, storm, explosion, robbery
the amount of a loss the policyholder pays BEFORE the insurer is obligated to pay anything
the amount you pay for insurance
a method for spreading individual risk among a large group of people
specialist in insurance calculations and statistics
Factors that influence auto insurance costs:
age, make, model, location, distance driven, purpose of driving
a table of premium rates based on ages and life expectancies
How does insurance help transfer risk?
it is spreading the risk across a large group of people which is making it more affordable for all
3 ways to reduce insurance costs
increase your deductible, make yourself a better risk, comparison shop, keep records
What type of insurance is required by law in VA?
What type of insurance protects a vehicle from damage not caused by an accident?
a person named on an insurance policy who will receive the benefits from the policy
Which type of insurance coverage pays for injuries and damages to others?
allows you to continue your health insurance for a LIMITED time with your employer after you leave employment, very EXPENSIVE as you're paying the entire premium
an individual who determines the value of property destroyed or damaged by a covered hazard
specified losses that the insurance company does not cover
How does disability insurance protect your income?
it will give you a percentage of your income to live on if you cannot work due to illness/injury
Differentiate between Medicare and Medicaid
Medicare- 65+ years w/certain disabilities
Medicaid- low incomes, limited resources
What does Homeowner's Insurance cover?
property, attractive nuisances, floaters, and risks and also you if someone is injured in your home
What does HIPAA limit?
pre-existing conditions that group health plans may exclude
What type of coverage is provided by Professional Liability Insurance?
errors and emissions - protects you if a client claims that your services caused them to suffer a financial loss.
Why is swimming pool attractive nuisance?
children like it and it's open, so it is a risk for them
Why buy an umbrella policy?
your regular policy limits may not be sufficient so an umbrella policy can "fill in the gaps"
Why floater policy?
to cover things the homeowner's insurance does not cover
a flat rate you'll pay for a specific service. Once you pay the ... the insurance takes over the remainder of the bill
Term vs Whole Life
Term- provides protection for a specific time period and a specific dollar amount
Whole- policyholder can cancel policy, borrow against it, convert it to a retirement account
Who is responsible for affordable care act?
Why would companies pay for preventive care?
to reduce the risk of illness/injury which reduces the risk of them having to pay a bunch of money
Life insurance a death benefit?
dependents are receiving benefits you want them to have when you die
What is the purpose of gap insurance for automobiles?
what you owe on a car and what the insurance company say it's worth