Insurance Flashcards
premium
under the policy, the insurer agrees to assume an identified risk for a fee; what you pay to get into the policy
Indemnification
putting the policy holder back in the same financial condition they were in before the loss occurred
3 steps to identify risk
- identify risks of loss
- assess seriousness of risks
- handle risks
deductible
specified amount of a loss that you must pay before insurance steps in
property owners 3 types of risks
hazards
crimes
liability
Endorsement
written amendment to an insurance policy
Personal Property Floater
insurance coverage for the insured moveable property wherever it may be located
Liability coverage (house)
insurance to protect against claims for bodily injury to another person or property (even unwanted guests)
Attractive nuisance
a dangerous thing that attracts children (pools, fire pit, trampoline)
What are premiums based on in auto insurance
-model, style and age
-driver classification
-location of driver and car
-distances driven
-purpose of driving
-grades
-previous tickets
-age, sex, marital status
Types of Auto Insurance
Liability
collision
comprehensive
PIP
Uninsured coverage
Liability Insurance (auto)
protects against claims for bodily injury to another person or property; required by law
Collision Coverage
protects your own car against damage from accidents (it’s your own fault)
Comprehensive
protects you from damage to your car from causes other than collisions (like animals)
PIP
personal injury protection; pays for medical costs of the insured and passengers
Uninsured
pays for your injuries when the other driver is legally liable but unable to pay
No fault insurance
laws that set up a system of compensation for auto accidents that doesn’t require a legal determination of who’s fault
Umbrella insurance
supplements your basic auto and property liability coverage by expanding limits and including additional risks
COBRA
law that allows you to keep your insurance after getting laid off
HSA
health savings account; employee benefit program that allows employees to set aside money to help pay deductibles during the year that’re not covered by insurance
dental and vision insurance
not included with regular health insurance
HMO
health maintenance organization (offers prepaid medical care to members)
PPO
preferred provider organization (doctors who come together to provide care for set fees)
Medicare
gov sponsored health insurance for people over 65
medicaid
gov sponsored health insurance for people with low income
Life insurance
provides funds to the beneficiaries when the insured dies
Incontestable clause
after a certain period of time, insurance can’t question things
Double indemnity
the beneficiary is paid double the face amount of the insurance policy
Can you cash out life insurance
almost always, no
will filing a claim raise your insurance
yes
can some healthcare require doctors
yes
3 main insurable risks
people
liability
property
stop loss provision
sets a maximum out of pocket expense
Coordination of benefits
insurances working together if you have more than one policy
you hit a biker and they are injured
liability
You get t-boned and you injured
PIP
Someone gets mad and hits another car, so they have to pay for damages
liability
hit a pole and car is damaged
collision
run a red, and they have no insurance
uninsured
someone hits your mirror off
comprehensive
weather
comprehensive
hit a deer and then swerve and hit another car
collision
you hit a deer and swerve into the ditch
comprehensive
