Insurance

Question 1

Insurance

Answer 1

Protection against possible financial loss

Question 2

Risk

Answer 2

Chance of loss or injury

Question 3

Peril

Answer 3

Anything that may possibly cause a loss

Question 4

Hazard

Answer 4

Anything that increases the likelihood of loss through peril

Question 5

Negligence

Answer 5

Failure to take ordinary or reasonable care to prevent accidents from happening

Question 6

Getting Insurance

Answer 6

In order to obtain insurance, a person must have an insurable interest (i.e. your body, your life, your car)

Question 7

Policy

Answer 7

Contract with an insurance company
Insured: Me
Insurer: Insurance Company (i.e. State Farm, Allstate)

Question 8

Premium

Answer 8

Amount you pay for the insurance coverage

Question 9

Deductible

Answer 9

Amount you agree to pay before asking insurance company for money

Question 10

Claim

Answer 10

Formal method of asking insurance company for money

Question 11

Liability

Answer 11

Legal responsibility for the financial cost of another person’s losses or injuries

Question 12

Rider

Answer 12

Special addition to a policy that covers a specific loss not covered in the standard policy