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22 Cards in this Set

  • Front
  • Back
insurance
paid protection against losses due to injury or property damage
policy
a contract between an insurance company and policyholder
liability insurance
protects you from claims of injury or property damage to others in case you're held responsible for an accident
actual cash value
the value of the car when it's new minus depreciation
depreciation
the decline in value of a vehicle because of use
financial responsibility law
syas you must pay for any damage or injury you cause in an accidnet either with insurance, with savings, or by selling property
compulsory insurance law
legally requires drivers to have a minimum amount of car insurance
no fault insurance
it doesnt matter who caused the acident and requires drivers involved in accidents to collect damages from their own insurance companies
claim
a request for payment from an insurer for any damages covered by a policy
premium
the amount an insurance company charges a policyholder for an insurance policy
deductible
an amount in damages a policyholder must pay before the insurance company pays anything
property insurance
you can protect yourself from financial loss on your property
real property
property attached to land, like a house, business, or garage
personal property
possessions that can be moved, like furniture, jewelry, and electronic equipment
renter's insurance
covers any loss or damage to your personal possessions
standard fire policy
to insure against damage due to fire or lightning
extended coverage
protects against damage from riots, car or airplane crashes, windstorms, hail, explosions, and roberies.
homeowners policy
a combination policy with different kinds of home protection
eleven perils
the most common causes of property damage-
fire/lightning, loss of property removed from permises endangered by fire or other perils, windstorm/hail, explosion, riot/civil commotion, aircraft, vehicles, smoke, vandalism/malicious mischief, theft, and breakage of glass constituting part of a building
6 standard homeowner policies
HO-1 Basic Form *least expensive*
HO-2 Broad Form *most popular*
HO-3 Special Form *max protection*
HO-4 Renter's Form *most comprehensive*
HO-5 Comprehensive Form(All Risks Policy)
HO-6 Condominium Owner's Form
rider
an addition to a policy that covers specific property or damages
replacement value
the full cost of repairing or replacing the property, regardless of the depreciation value