Final For Finance

Front 1

Insurance

Back 1

Protection against possible financial loss

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Insurance Company

Back 2

A risk sharing firm that assumes financial responsibility for losses that may result from an insured risk

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Insurer

Back 3

An insurance company

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Policy

Back 4

A written contract for insurance

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Premium

Back 5

The amount of money a policyholder is charged for an insurance policy

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Insured

Back 6

A person covered by an insurance policy

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Policyholder

Back 7

A person who owns an insurance policy

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risk

Back 8

Chance or uncertainty or loss also mean "the insured"

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Peril

Back 9

The cause of a possible loss

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Hazard

Back 10

A factor that increases the likelihood of loss through some peril

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Pure risk

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A risk in which there is only a chance of loss; also called "insurable risk"

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Speculative Risk

Back 12

A Risk in which there is a chance of either loss or gain

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Self-Insurance

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The process of establishing a monetary fund to cover the cost of a loss

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liability

Back 14

Legal responsibility of for the financial cost of another person's losses or injuries

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Negligence

Back 15

Failure to take ordinary or reasonable care in a situation

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Strict Liability

Back 16

A situation in which a person is held responsible for intentional or unintentional actions

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Vicarious Liability

Back 17

A situation in which a person is held legally responsible for the actions of another person

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Homeowner's Insurance

Back 18

Coverage for a place of residence and its associated financial risks

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Personal Property floater

Back 19

Additional property insurance to cover the damage or loss of a specific item of high value

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Household Inventory

Back 20

A list or other documentation of personal belongings, with purchase dates a cost information

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Umbrella policy

Back 21

Supplementary personal liability coverage; also called a "personal catastrophe policy"

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Medical payment coverage

Back 22

Home or automobile insurance that pays the cost of medical expenses for people injured on one's property on in one's car

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Endorsement

Back 23

An additional of coverage to the standard insurance policy

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Coinsurance Clause

Back 24

A policy provision that requires a homeowner to pay part of the losses if the property is not insured for the specified percentage of the replacement value

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Actual Cash Value (ACV)

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A claim settlement in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation

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Replacement Value

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A claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item

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Financial Responsibility law

Back 27

State legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident

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Bodily injury liability

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Coverage for the risk of financial loss due to legal expenses, medical costs, lost wages, and other expenses associated with injuries caused by an automobile accident for which the insured was responsible

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Uninsured motorist's Protection

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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

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No-Fault system

Back 30

an automobile insurance coverage in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs for their own insurance companies

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Property damage liability

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Automobile insurance coverage that protects a person against financial loss when that person damages the property of others

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Collision

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Automobile insurance that pays for damage to the insured's car when it is involved in an accident

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Comprehensive Physical Damage

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Automobile insurance that covers financial loss from damage to a vehicle caused by a risk other than a collision such as a fire

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Rating territory

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The place of residence used to determine a person's automobile insurance premium

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Driver Classification

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A category based on the driver's age, sex martial status, driving record and driving habit; used to determine automobile insurance rates

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Assigned Risk Pool

Back 36

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 at accept some of them