Chap 6

Front 1

Risk

Back 1

The chance of injury, damage, or economic loss

Front 2

Loss

Back 2

Refers to some type of physical injury, damage to property, absence of property, or absence of other assets

Front 3

Insurance Companies

Back 3

Manage big risks by insuring the ‘masses’

Front 4

Insurance Adjuster

Back 4

Look at damaged vehicles to determine how much money it should take to repair or total out the vehicle in question. Recommends an effective settlement for damages

Front 5

Liability Insurance

Back 5

Can be purchased for cars, motorcycles, homes, boats, & renters – anything that has general exposure to the public. It covers damages to other people and their programs.

Front 6

Insurance

Back 6

A way to guarantee your financial protection against various risks

Front 7

Premium

Back 7

The price paid for insurance.

Front 8

Deductible

Back 8

The amount of a loss you must pay out-of-pocket before the insurance company will step in and pay the rest.

Front 9

Stop-loss provision

Back 9

Will pay 100% of costs after a certain dollar amount has been spent ‘out-of-pocket’ by the insured person.

Front 10

Health Insurance

Back 10

A plan for sharing the risk of medical costs from injury and illness.

Front 11

Co-pay

Back 11

The amount a patient pays each time for using a medical service (each visit to the doctor)

Front 12

Basic Health Care

Back 12

Includes medical, hospital, and surgery services (doc fee, office visits and lab work)

Front 13

Major Medical

Back 13

Protects against very serious injury or illness beyond basic health care; often goes to 1million or more (bone marrow transplants and organ transplants)

Front 14

Dental & Vision

Back 14

1. May have a yearly benefit of up to $2,000 only; includes exams, x-rays, and fillings
2. Vision covers exams, lenses and frames. Sometimes prescription sunglasses and contact lenses

Front 15

Health Savings Accounts

Back 15

1. Allows people to set aside money to pay for out-of-pocket expenses tax free
2. Send in receipts of costs and get reimbursed
3. BUT: if you don’t use it, you lose it

Front 16

Disability Insurance

Back 16

Provides money to replace a portion of normal earnings when the insured is unable to work due to an injury or illness that is not job related

Front 17

Short-Term Disability

Back 17

1. Must be off work 30 days before getting any money.
2. Can collect a portion of your normal income for 6 months to 2 years

Front 18

Long-Term Disability

Back 18

1. Must be off work 6 months before getting any money.
2. It will continue until retirement.

Front 19

Worker’s Compensation

Back 19

1. A state-mandated insurance system that businesses (employers) must purchase.
2. In the event an employee gets injured on the job, this insurance will pay for medical care to the employee

Front 20

Malpractice Insurance

Back 20

Insurance purchased by doctors, hospitals, lawyers, architects, engineers, dentists, and accountants to prevent and limits them for being sued for negligent acts within the scope of their job

Front 21

Life Insurance

Back 21

pays money when the insured person dies

Front 22

Beneficiary

Back 22

The person who receives the money upon the death of the insured

Front 23

Term Life

Back 23

1. In effect for a specified number of years (20)
2. Premiums (payments) must be made the entire time or it to be in effect.
3. After the 20 years is up, no more insurance coverage
4. AKA: Pure Insurance as it won’t build any cash value within the 20 years

Front 24

Permanent Life

Back 24

1. Provides a death benefit but also builds value over time.
2. Can be borrowed against
3. Can be ‘cashed in’

Front 25

Whole Life

Back 25

1. AKA: Straight Life or Ordinary Life
2. Can be borrowed against, but death benefit goes down by the amount of the loan
3. Has an age limit (93-95 years of age)
4. Pay premiums as long as it is in effect

Front 26

Universal Life

Back 26

1. The premium and the death benefit are not fixed.
2. Can be adjusted to fit the insurer’s changing needs.

Front 27

Group Life

Back 27

1. Life insurance purchased through an employer or organization
2. Can get better coverage while paying a lower premium.

Front 28

Homeowner's Insurance

Back 28

protects from loss in the home; includes building and its contents (personal property)

Front 29

Fire & Other Hazards

Back 29

Protects from water, wind, and smoke damage to house, garage, shed, trees, plants, shrubs, and fences

Front 30

Criminal Activity

Back 30

Protects against theft and vandalism

Front 31

Personal Liability

Back 31

Protects when people get injured on your property

Front 32

Acts of Nature

Back 32

Protects from hurricanes, floods, volcanoes, and earthquakes

Front 33

Renter’s Insurance

Back 33

protects against personal property inside an apartment

Front 34

Automobile Insurance

Back 34

protects the owner of a car from losses as a result of accidents

Front 35

Liability Coverage

Back 35

if in an accident, it covers the other persons injury and damage

Front 36

Collision Coverage

Back 36

protects you from damage if you are hit by another car or rolling over; pays for damage to your car if you are at fault

Front 37

Comprehensive

Back 37

pays for damage to your car from other causes other than collision or rolling over

Front 38

Personal Injury

Back 38

pays for medical, hospital, and funeral costs of the insured, that the person’s family, and family

Front 39

No-Fault Insurance Laws

Back 39

some states say each person (person’s insurance company) pays for their own damages

Front 40

Uninsured Motorist

Back 40

covers your losses in case the other driver did not have insurance

Front 41

Umbrella Policy

Back 41

provides coverage over and beyond what is covered for cars and house; includes catastrophic losses; can be up to $1,000,000 or more