Insurance Flashcards
Provides payments for both liability and property insurance on a vehicle
Automobile insurance
Provides payment to replace earnings during times when workers cannot work due to illness or injury
Disability insurance
Provides money to pay for health care for illness, injury, or, in some cases, preventive care
Health insurance
Provides payment to cover liability losses as well as damage and loss of the home structure and its contents
Homeowners insurance
Provides payment to others if a member of the insured household accidently causes harm to other people or property
Liability insurance
Provides payment to beneficiaries who were named by the insured person
Life insurance
Provides payment for extended nursing care due to accidents, illness, or old age
Long‐term care insurance
Provides payment to the insured person if his or her property is damaged or destroyed by an accident covered by the insurance policy.
Property insurance
Provides payment to renters to cover the damage and loss of property in a rental unit in addition to liability losses
Renters insurance
Someone who receives money if an insured person dies
Beneficiary
A formal request to an insurance company asking for a payment when the policyholder has an accident, illness or injury
Claim
Requires the insured individual to pay a fixed percentage of the loss after the deductible has been paid
Co‐insurance
The risks covered and amount of money paid for losses under an insurance policy
Coverage
The out‐of‐pocket money paid by the policyholder before an insurance company will cover the remaining costs attributed to the loss
Deductible
Someone who relies on someone else for income and care
Dependent
Cash set aside that can be used to cover the costs of unexpected expenses
Emergency savings
Employers may offer employee benefits in the form of products or services that add extra value for employees beyond earned wages
Employee benefits
Doing something in the home without pay that takes raw materials along with a family member’s skill, experience, knowledge, and household equipment, to produce a useful product or service
Household production
The donation of a product or service in place of cash
In‐kind income
A financial product (called an insurance contract or policy) purchased by many people facing a similar risk to protect against the risk of larger losses.
Insurance
When the act of insuring an event increases the likelihood that the event will happen
Moral hazard
A contract between the insurance company and the insured that states the exact terms of the policy including what risks are covered and how much will be paid for any losses
Policy
A person who owns the insurance policy
Policyholder
The money paid to an insurance company to purchase a policy
Premium
The chance of loss from an event that cannot be entirely controlled
Risk
anything that may cause loss
Peril
increases the likelihood of loss through peril
Hazard
failure to take ordinary or reasonable care to prevent accidents from happening
Negligence
insurance that covers physical injuries caused by a vehicle accident for which you are responsible
Bodily Injury Liability
insurance that covers you and your family members if you are involved in an accident with an uninsured or a hit-and-run driver
Uninsured motorist’s protection
motor vehicle insurance that applies when you damage the property of others
Property damage liability
is insurance that covers damage to your vehicle when it is involved in an accident
Collision
This covers fire damage to your vehicle, break-ins, vandalism, or theft, as well as natural disasters such as an earthquake, hail, hurricane, or flood. (everything except an actual collision)
Comprehensive
arrangement whereby drivers who are involved in accidents collect money from their own insurance companies (Wisconsin is NOT a no-fault state)
No-fault system
group of people who cannot get motor vehicle insurance who are assigned to each insurance company operating in the state
Assigned risk pool
