Chapter 10 Flashcards

1
Q

premium

A

the periodic
payment made on an insurance
policy

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2
Q

declaration page

A

the
policy page that lists the
insurance company’s name and
address, the policyholder, the
coverage dates, and the
contracted coverage amounts

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3
Q

liability insurance

A

insurance that only covers the
driver’s legal responsibilities if
they are at fault for an accident

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4
Q

loss payee

A

in an insurance
contract, the third-party lien
holder who gets paid if there is
a claim on the insurance

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5
Q

full coverage

A

insurance
that includes comprehensive
and collision insurance

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6
Q

comprehensive
insurance

A

insurance that
covers an insured vehicle for
damage other than collision such
as fire, theft, weather, impacts
with animals, or vandalism

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7
Q

deductible

A

the amount of
money one must pay before the
insurer will begin to pay on a
claim

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8
Q

collision insurance

A

insurance that covers the
payment of repairs to a vehicle
damaged in a collision

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9
Q

salvage value

A

the value
of a damaged vehicle if it were
sold for scrap metal or to an
individual or company for repair

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10
Q

roadside assistance

A

insurance coverage to pay for
towing if your vehicle is disabled

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11
Q

insurance coverage to pay for
towing if your vehicle is disabled

A

insurance to cover the cost of
a rental vehicle if your vehicle
is stolen or being repaired;
usually involves a per-day limit
as well as a limit on the
number of days

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12
Q

SR-22 liability
insurance

A

liability
insurance required by states
for high-risk drivers

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13
Q

copayment

A

amount you
must pay for each particular
visit, service, or drug

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14
Q

coinsurance

A

percentage
you must pay until you reach
your maximum out-of-pocket
expense amount

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15
Q

exclusions

A

stated items
that are not covered by an
insurance policy

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16
Q

advance directives

A

instructions expressing your
wishes regarding medical
treatment in the event of
incapacitation