Unit 18 Vocabulary

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Insurance - A practice or arrangement whereby a company provides a guarantee of compensation for specified forms of loss, damage, injury or death.
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Terms in this set (27)
SalaryA regular payment, often at monthly or biweekly intervals, made by an employer to an employee, especially in the case of professional or white-collar employees. Salaries are paid for services rendered and are not based on hours worked.Unanticipated Expenses - Expenses that are not foreseen and may happen at irregular intervals. Examples can include medical expenses, auto or appliance repairs or losses from natural disasters.Unanticipated Income - Payments received that are not foreseen or may happen at irregular intervals. These can include bonuses and gifts.Variable Costs - Costs are anticipated but may vary from month to month. Examples may include entertainment, hobbies or certain educational expenses.WagePayments for labor services that are directly tied to time worked, or to the number of units of output produced.Assigned Risk - A driver or class of drivers that would be denied insurance coverage but must carry auto insurance under state law.Collision - Insurance that pays for repairs to an automobile, or replacement of the automobile (minus the deductible in each case), if the automobile is hit by another car.Comprehensive - Insurance that pays for repairs to an automobile, or replacement of an automobile (minus the deductible in each case), if the automobile is stolen or damaged by something other than a collision (for example, by a hail storm).Deductible - Regarding insurance policies: A set amount an insured person must pay per loss before the insurance company will pay a claim.Liability - Automobile insurance that pays for costs of bodily injury and property damage when the insured person damages someone or something with his or her car.No Fault - In some states, insurance claims are not paid by the party at fault for an accident. Instead, each party in an accident is compensated by their own company, regardless of which party caused the accident.Personal Injury Protection - A portion of auto insurance that pays for medical injuries.Uninsured/Underinsured Motorist - Insurance coverage that will pay a driver who is injured or otherwise suffers damages due to actions of a driver of another vehicle who is uninsured or does not cover sufficient insurance to pay all the damages.Endorsements - a written document attached to an insurance policy that modifies the policy by changing the coverage afforded under the policy. An endorsement can add coverage for acts or things that are not covered as a part of the original policy and can be added at the inception of the policy or later during the term of the policy.Floaters - A type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. This can cover anything from jewelry to expensive stereo equipment.Professional Liability - Insurance designed to protect professionals from claims due to errors or omissions, also known as malpractice insurance.Umbrella - A liability policy designed to protect assets and future income of a policy-holder from claims against them.