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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

Reduce risk

Reduce risk of loss by having smaller it cheaper property or ensuring regular maintenance

Accept risk

May accept the risk if likelihood of damage it an event is low

Share risk

Sharing risk of loss or an event with an insurer


Cost of obtaining insurance


A hazard or risk you face

Insurance agent

Represents one or more insurance companies and recommends insurance policies that fit customers' needs


Employees of an insurance company who calculate the risk of specific insurance policies and decide which policies to her and what premiums to charge

Captive (exclusive) insurance agents

Works for one particular insurance company

Independent insurance agents

Represent many different insurance companies

Insurance policy

Contract between an insurance company and the policy owner

Auto insurance policy

Species the coverage provided by an insurance company for a particular individual and vehicle

Third party liability

A legal term that describes the person(s) who have experienced loss because of the insured

Bodily injury liability

Protects you against liability associated with injuries you cause to others

Property damage liability coverage

Protects against losses that result when the policy owner damages another person's property with their car

Accident benefits coverage

Insures against the cost of medical care for you and other passengers in your car

Uninsured motorist coverage

Insures against the cost of bodily injury when an accident is caused by another driver who is not insured

Collision insurance

Insures against costs of damage to your car resulting from an accident in which the driver of your car is at fault

Comprehensive coverage

Insures you against damage to your car that results from something other than a collision, such as floods, theft, fire, etc.


Set dollar amount you are responsible for paying veggie coverage is provided by your insurer

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

No-Fault auto insurance

Allows policy owner to receive immediate medical attention regardless of who is at fault for causing the accident

Underinsured motorist coverage

Insures against the additional cost of bodily injury when an accident is caused by a driver who has insufficient coverage


A term assisting in insurance contracts or policies that describes items or circumstances that are specifically excluded from coverage

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

Homeowner's insurance

Provides insurance in the event of property damage, theft, or personal and third party liability relating to home ownership

All perils coverage

Protects the home and any other structures on the property against all events except those specifically excluded by the policy

Named perils coverage

Protects the home and any other structures in the property against only those named in the policy

Actual cash value policy

Pays you the value of the damaged property after considering its depreciation

Replacement cost policy

Pays you the cost of replacing the damaged property with an item of a similar brand and quality

Home inventory

Contains detailed information about your personal property that can be used when filing a claim

Personal property floater

An extension of the homeowners insurance that allows you to itemize your valuables

Factors that affect homeowner's insurance premiums

- value of insured home

- deductible

- location

- degree of protection

- discounts

Reducing homeowner's insurance

- increase deductible

- improve protection with alarms

- use one insurer for all types of insurance

- stay with same company

- shop around

Tenant's insurance

an insurance policy that protects your possessions within a house, condo, or apartment that you are renting

Umbrella personal policy

A supplement to auto and homeowner's insurance that provides additional personal liability coverage