26 terms

Lesson 15: Protect What You've Earned

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Terms in this set (...)

beneficiary
the person who receives the pay out on the insurance contract.
casualty
an accident or disaster as referred to in an insurance policy.
claim
notification to an insurance company of a loss with request for payment of benefits.
coverage
the dollar amount of insurance provided under an insurance policy.
coinsurance
a percentage of medical expenses the insured is responsible for paying after they meet their deductible.
copay
a fixed amount the insured is required to pay at time of service.
deductible
a fixed amount or fixed percentage of the claim which the insured is responsible for paying before the insurance company has to pay.
endorsement
additions to a homeowner's insurance policy that alter the policy's coverage and terms; also called a rider.
exclusion
peril or loss that is not covered by the policy.
exposure
the potential for loss.
hazard
a condition that increases the risk that a loss will occur.
Health Maintenance Organization
"HMO"; type of managed care plan where covered healthcare services are provided only through an approved network of providers.
insurance policy
a contract between an insurance company and an insured by which the insurer agrees to compensate the insured in the event of loss.
insurer
a company that by contract assumes the risk of loss in the event of accident, error, illness or death, in exchange for a fee.
insured
the person who contracted with the insurance company and is entitled to the benefits of the insurance coverage.
indemnify
to compensate for damage or loss.
loss
reduction in worth.
policy declarations
the basic information that defines the policy, such as the name of the beneficiary, address of the insured property and amount of coverage.
policy limits
the maximum amount an insurance company is obligated to pay out under an insurance policy.
Preferred Provider Organization
"PPO"; type of managed care plan where members may see in-network healthcare providers without a referral and out-of-network providers at reduced benefits.
premium
a monthly, quarterly or annual payment the insured must pay to the insurance company to maintain the coverage under a plan or policy.
replacement value
the amount it would cost to repair or replace an item.
risk
likelihood that the loss causing event will occur.
rider
additions to a homeowner's insurance policy that alter the policy's coverage and terms; also called an endorsement.
umbrella policy
excess coverage above and beyond the liability limits of a standard insurance policy.
underwriter
the insurer.