8. Insurance Flashcards
Anticipated expenses
Regular payments that must be made to cover certain regular expenditures. These could include rent, utility bills, and groceries.
Fixed costs
Cost which remain the same each month. (eg., rent, house payments, automobile, loan payment)
Variable costs
Costs are anticipated but may vary from month to month. Examples may include entertainment, hobbies or certain educational expenses.
Unanticipated expenses
Expenses that are not foreseen and may happen at irregular intervals. Examples can include medical expenses, auto or appliance repairs or losses from natural disasters.
Anticipated income
Regular receipts of funds that come as part of a contractual obligation. These can include wages, salary payments or certain conditional payments such as scholarships.
Unanticipated income
Payments received that are not foreseen or may happen at irregular intervals. These can include bonuses and gifts.
Assigned risk
A driver or class of drivers that would be denied insurance coverage but must carry auto insurance under state law.
Premium
An amount of money to be paid for an insurance policy.
Deductible
Regarding insurance policies: A set amount of money an insured person must pay per loss before the insurance company will pay a claim.
No fault Insurance
In some states, insurance claims are not paid by the party at fault for an accident. Instead, each party in an accident is compensated by their own company, regardless of which party caused the accident.
Liability insurance
Automobile insurance that pays for the costs of bodily injury and property damage when the insured person damages someone or something with his or her car.
Collision Insurance
Insurance that pays for repairs to an automobile, or replacement of the automobile (minus the deductible in each case), if the automobile is hit by another car.
Comprehensive Insurance
Insurance that pays for repairs to an automobile, or replacement of an automobile (minus the deductible in each case), if the automobile is stolen or damaged by something other than a collision (for example, by a hail storm).
Personal Injury Protection
A portion of auto insurance that pays for medical injuries of people in your car.
Uninsured/Underinsured Motorist insurance
Insurance coverage that will pay a driver who is injured or otherwise suffers damages due to actions of a driver of another vehicle who is uninsured or does not cover sufficient insurance to pay all the damages.
Property insurance
Provides payment to the insured person if his or her property is damaged or destroyed by an accident covered by the insurance policy. (eg., homeowner’s insurance & renter’s insurance)
Professional liability insurance
A type of insurance purchased by professional people to protect against malpractice and other litigation.
Umbrella liability insurance
provides additional protection should other policies not be sufficient.
Types of life insurance
temporary insurance and permanent insurance
Term life policy
An insurance policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age (i.e. death).
Whole life insurance
A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.
Co-pays
The portion of a medical service charge paid by the insured. This is paid first and the balance of the charge is submitted to the insurer for payment.
Dental insurance
A specific type of medical insurance designed to cover care of the teeth and gums.
Disability insurance
A type of insurance meant to provide long-term coverage and care if the insured is unable to work due to illness or injury.
