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73 Cards in this Set
- Front
- Back
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Insurance
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Protection against possible financial loss.
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Insurance Company
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A risk-sharing firm that assumes financial responsibility for losses that may resuly from an insured risk.
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Insurer
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An insurance Company
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Policy
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A written contract fro insurance.
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Premium
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The amount of money a policy holder is charged for an insurance policy.
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Insured
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A person covered by an insurance policy.
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Policy holder
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a person who owns an insurance policy.
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risk
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chance or uncertainty of loss; also used to mean "the uninsured"
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peril
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the cause of a possible loss.
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Hazard
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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 ther is only a chance of loss; also called insurable risk.
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Speculative Risk
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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 loss.
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Liability
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Legal responsibility for the financial cost of another persons losses or injuries.
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Negligence
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Failure to take ordinary or reasonable care in a situation.
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Strict Liability
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A situation in which a person is held responsible for intentional or unintentional actions.
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Vicarious Liability
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A situtaion in which a person is held legally responsible for the actions of another person.
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Homeowner's Insurance
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Coverage for a place of residence and its associated financial risks.
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Personal Property Floater
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Additional property insurance to cover the damage or loss of a specific item of high value.
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Household Inventory
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A list or other documentation of personal belongings, with purchase dates and cost information.
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Umbrella Policy
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Suplementary personal liability coverage; also called a personal catastrophe policy.
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Medical Payments Coverage
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Home insurance that pays the cost of minor accidental injuries on ones property.
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Endorsement
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an addition to coverage to a standard insurance policy.
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Coinsurance Clause
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A policy provision that requires a homeowner to pay for part of the losses if the property is not insured for the specified percentage of the replacement value.
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Actual Cash Vaule ( ACV)
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A claim settlement method 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
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State legislation that requires drives 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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Medical Payments Coverage
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Automobile insurance that covers medical expenses for people injured in one's car or as a pedestrian
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Uninsured motorists protection
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automobile insurance coverage for the lost 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
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An automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from 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 fire, theft, glass breakage, hail, or vandalism.
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Rating territory
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The place of residence used to determine a persons automobile insurance premium.
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Driver Classification
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A category based on the driver's age, sex, marital status, driving record, and driving habits; used to determine automobile insurance rates.
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Assigned Risk Pool
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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.
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Coordination of Benefits (COB)
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A method of integrating the benefits payable under more than one health insurance plan.
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Hospital Expense Insurance
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Pays part or all of hospital bills for roo, board, and other charges.
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Surgical Expense Insurance
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Pays part or all of the surgeons fees for an operation.
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Basic Health Insurance Coverage
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Combination of hospital expense insurance, surgical expense insurance, and physician expense insurance.
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Major Medical Expense Insurance
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Pays most of the costs exceeding those covered by the hospital, surgical, and physician expense policies.
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Deductible
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An amount the insured must pay before benefits become payable by the insurance company.
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Coinsurance
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A provision under which both the insured and the insurer share the covered losses.
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Stop-less
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A provision under which an insured pays a certain amount, after which the insurance company pays 100 percent of the remaining covered expenses.
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Comprehensive Major Medical Insurance
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A type of major medical insurance that has a very low deductible and is offered without a separate basic plan.
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Hospital indemnity Policy
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Pays stipulated daily, weekly, or monthly cash benefits during hospital confinement.
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Long-term care insurance (LTC)
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Provides day-in, day-out care for long-term illness or disability.
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Copayment
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A provision under which the insured pays a flat dollar amount each time a covered medical service is received after the deductible has been met.
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Blue Cross
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An independent, nonprofit membership corporation that provides protection against the cost of hospital care.
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Blue Shield
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An independent, nonprofit membershup corporation that provvides protection against the cost of surgical and medical care.
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Managed Care
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Prepaid health plans that provide comprehensive health care to members.
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Health Maintenance Organization (HMO)
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A health insurance plan that provides a wide range of health care services for a fixed, prepaid monthly premium.
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Preferred Provider Organization (PPO)
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A group of doctors and hospitals that agree to provide health care at rates approved by the insurer.
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Exclusive Provider Organization (EPO)
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Renders medical care from affiliated health care providers
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Point-of-service plan (POS)
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A network of selected contracted, participating providers; also called HMO-PPO hybrid or open-ended HMO
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Medigap (MedSup) Insurance
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Supplements Medicare by filling the gap between Medicare payments and medical costs not covered by Medicare.
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Disability Income Insurance
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Provides payments to replace income when an insured person is unable to work.
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Non-participating Policy
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Life insurance that does not provide policy dividends; also called a nonpar policy
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Participating Policy
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Life insurance that provides policy dividends; slao called a par policy
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Term Insurance
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Life insurance protection for a specified period of time; sometimes called temporary insurance.
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Whole Life Policy
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An insurance plan in which the policyholder pays a specified premium each year for as long as the or she lives; also called a straight life policy, cash-value life policy, or ordinary life policy.
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Cash Value
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The amount received after giving up a life insurance policy.
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Universal Life
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A whole life policy that combines term insurance and investmetn elements.
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Beneficiary
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A person deignated to receive something, such as life insurance proceeds, from the insured.
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Non-forfeiture Clause
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A provision that allows that insured not to forfeit all accrued benefits.
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Incontestability Clause
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A provision stating that the insurer cannot dispute the validity of a policy after a specified period.
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Suicide Clause
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A provision stating that if the insured dies by suicide during the first tow years the policy is in force, the death benefit will equal the amount of the premium paid.
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Rider
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A document attached to a policy that modifies its coverage
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Double Indemnity
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A benefit under which the company pays twice the face value of the policy if the insured's death results from an accident.
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Chartered Life Underwriter (CLU)
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A life insurance agent who has passed a series of college-level examinations on insurance and related subjects.
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Interest-adjusted Index
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A method of calcuation the cost of life insurance by taking into account the time value of money.
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Annuity
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A contract that provides a regular income for as long as the person lives.
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