Banking Flashcards
Bank
A broad term that refers to a financial institution regulated at the federal level, state level, or both.
Commercial bank
A commercial bank is a financial institution that accepts deposits and makes loans.
Shareholder
A person, company, or institution that owns at least one share of a company’s stock.
Financial Institution
An institution that engages in the movement of money from one place to another.
Types of financial institutions
Banks, Credit Unions, Financial Technology Companies (Fintech Companies), Mortgage Lenders, Credit Card Companies, Insurance Companies, and Savings and Loan Associations (S&Ls)
Federal Deposit Insurance Corporation
A United States government corporation that provides deposit insurance to american commercial banks, in case they fail.
Credit Union
A non profit financial institution that is owned by it’s members.
National Credit Union Administration
An independent federal agency that insures deposits made at credit unions in the U.S.
Savings and Loan Associations
Financial Institutions that specialize in accepting savings depostis and making mortgage loans.
Mutual Ownership
A type of ownership where a company’s customers are it’s owners.
Mortgage Lenders
A financial institution that provides mortgages/Home loans.
Mortgage
A type of loan used to purchase a house.
Foreclosure
The legal process of a lender taking back ownership of a propery when a borrower defaults on a mortgage.
Credit Card Company
A finanial institution that provides or issues credit cards.
Credit Card Network
An organization that facilitates debit and credit card payments between card issuers and merchants.
Four Major Credit Card Networks
Mastercard, Visa, American Express, Discover,
Debit
The process of a bank removing an amount of money from a customers account, as payment for goods or services.
Credit
The process of adding an amount of money to an account.
Insurance Company
A financial institution that sells insurance policies to protect people and organizations from financial losses.
Premiums
Regular payments that customers make to an insurance company.
Risk Pooling
An Insurance company collecting premiums from all policyholders and using the funds to pay out claims.
Claim
A request to an insurance company for the compensation of a covered loss or incident.
Underwriting
The process of an insurance company evluating the risk of insuring an individual or business.
Types of Insurances Companies
Life, Health, Property & Casualty, Automotive, Commercial.
Life Insurance Companies
Companies that sell insurance policies that provide financial protection to designated beneficiaries upon the death of the insured person.
Health Insurance Companies
Companies that sell insurance policies that provide coverage for medical expenses.
Property & Casualty Insurance Companies (P&C)
Companies that sell insurance policies that provide coverage for property damage and liabilities.
Liability
The state of being legally responsible for something.
Insurance Policy
A contract detailing the terms and conditions of an insurance.
Terms and Conditions (T&Cs)
A legal agreement between a business and it’s customers that outline the rules and expectations for both parties.
Automotive/Auto Insurance Companies
Companies that sell insurance polices that provide coverage for vehicle damage and liabilites.
Commercial Insurance Companies
Companies that sell insurance policies that provide coverage for a variety of business risks.
Negligence
A legal term that refers to the failure to use reasonable care to prevent harm.
Commercial
Relating to or engaged in commerce.
Commerce
The buying and selling of goods and services.
Insurance
An arrangement by which a company provides a guarantee of compensation for a loss.
Types of Life Insurance
Term, Whole, Universal, Variable, Final expense.
Cash Value Component
A feature of permanent life insurance policies that acts as a savings account holding a portion of premiums, separate from the death benefit.
Types of Health Insurance
HMO (Health Maintenance Organization), PPO (Preferred Provider Organization), EPO (Exclusive Provider Organization), HDHP (High-Deductible Health Plan), Medicare, Medicaid.
Deductible
The amount of money a policyholder pays before the insurance company pays for covered expenses.
Federal
Pertains to a union of states under a central government.
Joint Insurance
A type of policy that covers two or more people under a single policy.
Types of P&C Insurance
Homeowners, Auto, Renters, Commercial, Umbrella.
Types of Auto Insurance
Liability, Collision, Comprehensive, Uninsured/Underinsured, PIP (Personal Injury Protection)
Multiline Insurance/Package Insurance Policy/Bundled Insurance Policy
A type of insurance policy that combines multiple types of coverage into a single policy.
