Insurance - General Terms Flashcards
1
Q
The chance that something unexpected or harmful could happen
A
Risk
2
Q
Paying to transfer your risk to someone else (usually a company)
A
Insurance
3
Q
The contract between the insurance company and the person insured
A
Policy
4
Q
The cost of the policy - what you pay to have the insurance in the first place
A
Premium
5
Q
The amount of loss the insured person has to pay for each year BEFORE the insurance will pay anything
A
Deductible
6
Q
A formal request by a policyholder for coverage (payment) for a loss
A
Claim
7
Q
The person who receives the insurance money when the benefit is paid
A
Beneficiary
8
Q
The amount paid by the insurance company to compensate for the loss
A
Benefit
9
Q
When an asset’s value (worth) goes up over time
A
Appreciate
10
Q
When an asset’s value is lower in the future
A
Depreciate
