Insurance Flashcards
1
Q
Risk
A
Change of loss or injury.
2
Q
Peril
A
Anything that may possibly cause a loss.
3
Q
Hazard
A
Anything that increases the likelihood of loss through peril.
4
Q
Negligence
A
Failure to take ordinary or reasonable care to prevent accidents from happening.
5
Q
Policy
A
Contract with an insurance coverage.
6
Q
Premium
A
Amount you pay for the insurance coverage
7
Q
Deductible
A
Amount you agree to pay before asking insurance company for money.
8
Q
Claim
A
Formal method of asking insurance company for money
9
Q
Liability
A
Legal responsibility for the financial cost of another person’s losses or injuries.
10
Q
Rider
A
Special addition to a policy that covers a specific loss not covered in the standard policy.
11
Q
Insurance
A
Protection against possible financial loss.
