28 terms

Insurance

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Actuary
An employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums
Claim
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy
Collision Coverage
Auto insurance that protects you against costs to repair your own vehicle after a crash
Comprehensive Coverage
Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc.
Conditions Of The Policy
The portion of a car insurance policy that spells out the details for how to make a claim, what information you must have, how much time you have, and how to cancel your policy
Copay
A set dollar amount you agree to pay each time you receive medical treatment, while the insurance company agrees to cover the rest
Declarations Page
The page of a car insurance policy which includes a summary description of the insurance coverage provided and gives the maximum dollar limit the insurer will pay for a claim under each coverage
Deductible
The amount of money you agree to pay towards your losses before your insurance coverage will begin paying
Extended Warranty
An additional form of protection that can be purchased to extend/enhance a manufacturer's warranty on consumer goods, like phones and electronics
Federal Deposit Insurance Corporation (FDIC)
The U.S. corporation insuring deposits in US banks against bank failure
Insurance
An agreement where you make regular payments to a company and the company promises to pay you money if you suffer an injury, illness, loss, etc
Insurance Agent
An employee of an insurance company who sells insurance policies and provides customer service
Insurance Fraud
An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally
Insurance Policy
A contract in which an individual or entity receives financial protection or reimbursement against losses
Insuring Agreement
The main part of a car insurance policy, which clearly spells out every point of what coverage you receive for the premium you're paying
Liability Coverage
Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident
Loss
When someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them
Maximum Out-Of-Pocket Expenses
The maximum amount of money you will have to spend on health care in a year, after which the insurance company agrees to cover all costs
Minimum Liability Limit
The lowest amount of auto insurance coverage one can have to be legally allowed to drive in each state
Personal Injury Protection (PIP)
Auto insurance that protects you against cost of your own medical bills if you are involved in a car accident
Premium
The specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time
Probability
The chance of something happening or not happening within a certain number of occurrences
Quote
An estimate of what premium you would pay for a certain insurance coverage plan
Risk
A situation involving exposure to danger, harm, or loss
Risk Pooling
The spreading of financial risk evenly among a large number of contributors to the program
Social Security
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
Underwriter
An employee of an insurance company who evaluates an individual's risk factors and assigns premium amounts
Uninsured/Underinsured Coverage
Auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses
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