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Personal Finance > Insurance > Flashcards

Insurance Flashcards

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1
Q

premium

A

under the policy, the insurer agrees to assume an identified risk for a fee; what you pay to get into the policy

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2
Q

Indemnification

A

putting the policy holder back in the same financial condition they were in before the loss occurred

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3
Q

3 steps to identify risk

A
  1. identify risks of loss
  2. assess seriousness of risks
  3. handle risks
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4
Q

deductible

A

specified amount of a loss that you must pay before insurance steps in

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5
Q

property owners 3 types of risks

A

hazards
crimes
liability

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6
Q

Endorsement

A

written amendment to an insurance policy

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7
Q

Personal Property Floater

A

insurance coverage for the insured moveable property wherever it may be located

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8
Q

Liability coverage (house)

A

insurance to protect against claims for bodily injury to another person or property (even unwanted guests)

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9
Q

Attractive nuisance

A

a dangerous thing that attracts children (pools, fire pit, trampoline)

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10
Q

What are premiums based on in auto insurance

A

-model, style and age
-driver classification
-location of driver and car
-distances driven
-purpose of driving
-grades
-previous tickets
-age, sex, marital status

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11
Q

Types of Auto Insurance

A

Liability
collision
comprehensive
PIP
Uninsured coverage

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12
Q

Liability Insurance (auto)

A

protects against claims for bodily injury to another person or property; required by law

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13
Q

Collision Coverage

A

protects your own car against damage from accidents (it’s your own fault)

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14
Q

Comprehensive

A

protects you from damage to your car from causes other than collisions (like animals)

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15
Q

PIP

A

personal injury protection; pays for medical costs of the insured and passengers

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16
Q

Uninsured

A

pays for your injuries when the other driver is legally liable but unable to pay

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17
Q

No fault insurance

A

laws that set up a system of compensation for auto accidents that doesn’t require a legal determination of who’s fault

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18
Q

Umbrella insurance

A

supplements your basic auto and property liability coverage by expanding limits and including additional risks

19
Q

COBRA

A

law that allows you to keep your insurance after getting laid off

20
Q

HSA

A

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

21
Q

dental and vision insurance

A

not included with regular health insurance

22
Q

HMO

A

health maintenance organization (offers prepaid medical care to members)

23
Q

PPO

A

preferred provider organization (doctors who come together to provide care for set fees)

24
Q

Medicare

A

gov sponsored health insurance for people over 65

25
Q

medicaid

A

gov sponsored health insurance for people with low income

26
Q

Life insurance

A

provides funds to the beneficiaries when the insured dies

27
Q

Incontestable clause

A

after a certain period of time, insurance can’t question things

28
Q

Double indemnity

A

the beneficiary is paid double the face amount of the insurance policy

29
Q

Can you cash out life insurance

A

almost always, no

30
Q

will filing a claim raise your insurance

A

yes

31
Q

can some healthcare require doctors

A

yes

32
Q

3 main insurable risks

A

people
liability
property

33
Q

stop loss provision

A

sets a maximum out of pocket expense

34
Q

Coordination of benefits

A

insurances working together if you have more than one policy

35
Q

you hit a biker and they are injured

A

liability

36
Q

You get t-boned and you injured

A

PIP

37
Q

Someone gets mad and hits another car, so they have to pay for damages

A

liability

38
Q

hit a pole and car is damaged

A

collision

39
Q

run a red, and they have no insurance

A

uninsured

40
Q

someone hits your mirror off

A

comprehensive

41
Q

weather

A

comprehensive

42
Q

hit a deer and then swerve and hit another car

A

collision

43
Q

you hit a deer and swerve into the ditch

A

comprehensive

Personal Finance (5 decks)

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