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37 Cards in this Set

  • Front
  • Back
protection against possible financial loss
insurance company
a risk-sharing firm that assumes financial responsibility for losses that may result from an insured risk
an insurance company
a written contract for insurance
the amount of money a policyholder is charged for an insurance policy
a person covered by an insurance policy
a person who owns an insurance policy
chance or uncertainty of loss; also used to mean "the insured"
the cause of a possible loss
a factor that increases the likelihood of loss through some peril
pure risk
a risk in which there is only a chance of loss; also called insurable risk
speculative risk
a risk in which there is a chance of either loss or gain
the process of establishing a monetary fund to cover the cost of a loss
legal responsibility for the financial cost of another person's losses or injuries
failure to take ordinary or reasonable care in a situation
strict liability
a situation in which a person is held responsible for intentional or unintentional actions
vicarious liability
a situation in which a person is held legally responsible for the actions of another person
homeowner's insurance
coverage for a place of residence and its associated financial risks
personal property floater
additional property insurance to cover the damage or loss of a specific item of high value
household inventory
a list or other documentation of personal belongings, with purchase dates and cost information
umbrella policy
supplementary personal liability coverage; also called a personal catastrophe policy
medical payments coverage
home insurance that pays the cost of minor accidental injuries on one's property
an addition of coverage to a standard insurance policy
coinsurance clause
a policy provision that requries a homeowner to pay for part of the losses if the property is not insured for the specified percentage of the replacement value
actual cash value (ACV)
a claim settlement method in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation
replacement value
a claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item
financial responsibility law
state legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident
bodily injury liability
coverage for the risk of financial loss due to legal expenses, medical ccosts, lost wages and other expenses associated with injuries caused by an automobile accident for which the insured was responsible
medical payments coverage
automobile insurance that covers medical expenses for people injured in one's car
uninsured motorist's protection
automobile insurance coverage for the cost of injuries to a person and members of his or her family caused by a driver with inadequate insurance or by a hit-and-run driver
no-fault system
an automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages and related injury costs from their own insurance companies
property damage liability
automobile insurance coverage that protects a person against financial los whenthat person damages the property of others
automobile insurance that pays for damage to the insured's car when it is involved in an accident
comprehensive physical damage
automobile insurance that covers financial loss from damage to a behicle caused by a risk other than a collision, such as fire, theft, glass breakage, hail or vandalism
rating territory
the place of residence used to determine a person's automobile insurance premium
driver classification
a category based on the driver's age, sex, marital status, driving record and driving habits; used to determine automobile insurance rates
assigned risk pool
consists of people who are unable to obtain automobile insurance due to poor driving or accident records and must obtain coverage at high rates through a state program that requires insurance companies to accept some of them