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36 Cards in this Set
- Front
- Back
Avoiding risk |
Can avoid risk of property damage if you do not own property |
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Reduce risk |
Reduce risk of loss by having smaller it cheaper property or ensuring regular maintenance |
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Accept risk |
May accept the risk if likelihood of damage it an event is low |
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Share risk |
Sharing risk of loss or an event with an insurer |
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Premium |
Cost of obtaining insurance |
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Perils |
A hazard or risk you face |
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Insurance agent |
Represents one or more insurance companies and recommends insurance policies that fit customers' needs |
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Underwriters |
Employees of an insurance company who calculate the risk of specific insurance policies and decide which policies to her and what premiums to charge |
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Captive (exclusive) insurance agents |
Works for one particular insurance company |
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Independent insurance agents |
Represent many different insurance companies |
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Insurance policy |
Contract between an insurance company and the policy owner |
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Auto insurance policy |
Species the coverage provided by an insurance company for a particular individual and vehicle |
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Third party liability |
A legal term that describes the person(s) who have experienced loss because of the insured |
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Bodily injury liability |
Protects you against liability associated with injuries you cause to others |
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Property damage liability coverage |
Protects against losses that result when the policy owner damages another person's property with their car |
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Accident benefits coverage |
Insures against the cost of medical care for you and other passengers in your car |
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Uninsured motorist coverage |
Insures against the cost of bodily injury when an accident is caused by another driver who is not insured |
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Collision insurance |
Insures against costs of damage to your car resulting from an accident in which the driver of your car is at fault |
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Comprehensive coverage |
Insures you against damage to your car that results from something other than a collision, such as floods, theft, fire, etc. |
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Deductible |
Set dollar amount you are responsible for paying veggie coverage is provided by your insurer |
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Facility Association |
Ensures that drivers unable to obtain insurance with an individual company are able to obtain the coverage they need to operate their vehicle legally |
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No-Fault auto insurance |
Allows policy owner to receive immediate medical attention regardless of who is at fault for causing the accident |
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Underinsured motorist coverage |
Insures against the additional cost of bodily injury when an accident is caused by a driver who has insufficient coverage |
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Exclusions |
A term assisting in insurance contracts or policies that describes items or circumstances that are specifically excluded from coverage |
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Factors that affect premiums |
- how car is used - value of car - repair record of car - location - driver training - driving record - age and sex - driving distance |
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Homeowner's insurance |
Provides insurance in the event of property damage, theft, or personal and third party liability relating to home ownership |
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All perils coverage |
Protects the home and any other structures on the property against all events except those specifically excluded by the policy |
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Named perils coverage |
Protects the home and any other structures in the property against only those named in the policy |
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Actual cash value policy |
Pays you the value of the damaged property after considering its depreciation |
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Replacement cost policy |
Pays you the cost of replacing the damaged property with an item of a similar brand and quality |
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Home inventory |
Contains detailed information about your personal property that can be used when filing a claim |
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Personal property floater |
An extension of the homeowners insurance that allows you to itemize your valuables |
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Factors that affect homeowner's insurance premiums |
- value of insured home - deductible - location - degree of protection - discounts |
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Reducing homeowner's insurance |
- increase deductible - improve protection with alarms - use one insurer for all types of insurance - stay with same company - shop around |
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Tenant's insurance |
an insurance policy that protects your possessions within a house, condo, or apartment that you are renting |
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Umbrella personal policy |
A supplement to auto and homeowner's insurance that provides additional personal liability coverage |