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Terms in this set (34)
A situation involving exposure to danger, harm, or loss.
A means of guaranteeing protection or safety.
The spreading of financial risk evenly among a large number of contributors to the program.
A contract in which an individual or entity receives financial protection or reimbursement against losses.
The specified amount of payment required periodically by an insurer to provide coverage under a given insurance plan for a defined period of time.
The chance of something happening or not happening within a certain number of occurrences.
Law of Averages
A belief that the statistical distribution of outcomes among members of a small sample must reflect the distribution of outcomes across the population as a whole.
A person who calculates the risks based on loss percentages and determines insurance rates and premiums.
Employee of an insurance company who evaluates risk and assigns premium amounts.
A representative of an insurance company who sells insurance contracts (policies) and provides customer service. He or she must be licensed by the state in which a policy is sold.
Provided by a state's department of insurance, this certifies that an insurance company provides fair prices, honest procedures and is financially capable of paying out large or numerous claims.
National Association of Insurance Commissioners (NAIC)
This federal association brings together state regulation heads -- typically semi-annually -- to share best practices and review performance.
An illegal act on the part of either the buyer or seller of an insurance contract.
When a consumer endures a negative financial outcome (from a house burning down to an injury suffered at work).
A formal request to an insurance company asking for a payment based on the terms of the insurance policy.
The payment of punitive damages (like money) that are owed as a result of wrongdoing or neglect.
Protects you against medical costs for the bodily injury of others and damages to the property of others.
Protects you against costs to repair your vehicle after some sort of crash your vehicle was involved in.
Protects you against costs to repair or replace your vehicle after events out of your control (weather, vandalism, theft, etc.)
Personal Injury Protection (PIP)
Protects you against cost of your medical bills if you are involved in a car accident.
Protects you against another driver not having enough coverage to pay the entirety of your costs.
The amount of money you agree to pay towards your costs before your insurance coverage will begin paying. Applies to most types of insurance, including car and health insurance.
Minimum Liability Limit
The lowest amount of coverage one can have to be legally allowed to drive. Varies by state.
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.
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.
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, and how much time you have. It also provides details of how to cancel your policy.
The one thing you should NEVER do during a car insurance claim.
An estimate of what premium you would pay for a certain coverage plan.
A set dollar amount you agree to pay each time you receive medical treatment. The insurance company agrees to cover the rest.
Maximum Out-of-Pocket Expenses
A maximum amount of money you will have to spend. Beyond that, the insurance company agrees to cover all costs.
Extended Warranty (Service Contract)
An additional form of protection that can be purchased to extend/enhance a manufacturer's warranty (generally for consumer goods, like phones and electronics).
Affordable Care Act (ACA)
The centerpiece of national healthcare reform, signed by President Obama in 2010. Includes the expansion of Medicaid eligibility, the establishment of health insurance exchanges and prohibiting health insurers from denying coverage due to pre-existing conditions.
Federal Deposit Insurance Corporation (FDIC)
An organization that guarantees the value of every savings account in participating financial institutions, up to $250,000.
A program that provides benefits for specifically vulnerable Americans, including the elderly and disabled. It is paid for through mandated contributions from every employee and employer.