insurance vocab

Question 1

premium

Answer 1

the specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time

Question 2

actuary

Answer 2

an employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums

Question 3

collision coverage

Answer 3

auto insurance that protects you against costs to repair your own vehicle after a crash

Question 4

comprehensive coverage

Answer 4

auto insurance that protects you against costs to repair or replace your vehicle after events that are out of your control like weather, vandalism, and theft

Question 5

conditions of the policy

Answer 5

the portion of a car insurance policy that spells out details for how to make a claim, what information you must have, how much time you have, and how to cancel your policy

Question 6

copay

Answer 6

a set dollar amount that you agree to pay each time you receive medical treatment
while your insurance company pays the rest

Question 7

declarations page

Answer 7

the page of a car insurance policy which includes a summary description of the insurance coverage provided and gives the maximum dollar limit that the insurance company will pay for a claim under each coverage

Question 8

deductible

Answer 8

the amount of money you agree to pay towards your loss before the insurance will begin paying

Question 9

extended warranty

Answer 9

an additional form of protection that can be purchased to extend a manufacturers warranty on consumer goods like phones and electronics

Question 10

insurance

Answer 10

an agreement where you make regular payments to a company and the company promises to pay you money if you suffer an injury,illness or loss

Question 11

insurance agent

Answer 11

an employee of an insurance company who sells insurance policies and provides customer service

Question 12

insurance fraud

Answer 12

an act on the part of either the buyer or the seller of an insurance contract in an attempt to gain money illegally

Question 13

insurance policy

Answer 13

a contract in which an individual or entity receives financial protection or reimbursement against losses

Question 14

insuring agreement

Answer 14

the main part of a car insurance policy, which clearly spells out every point of what coverage you receive for the premium you’re paying

Question 15

loss

Answer 15

when someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them

Question 16

liability coverage

Answer 16

auto insurance that protects you against medical costs for the bodily harm of others and damages to the property of others if you are at fault

Question 17

minimum liability limit

Answer 17

the lowest amount of auto insurance coverage that one can have to be legally allowed to drive
depends on state

Question 18

personal injury protection

Answer 18

auto insurance that protects you against costs of your own medical bills if you are involved in a car accident

Question 19

probability

Answer 19

the chance of something happening or not happening within a certain number of occurrences

Question 20

quote

Answer 20

an estimate of what premium you would pay for a certain insurance coverage plan

Question 21

risk

Answer 21

a situation involving exposure to danger harm or loss

Question 22

claim

Answer 22

a formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy

Question 23

risk pooling

Answer 23

the spreading of financial risk evenly among a larger number of contributors to the program

Question 24

maximum out of pocket expense

Answer 24

the maximum amount of money you will gave to spend on health care in a year, after which the insurance company agrees to cover all costs

Question 25

underwriter

Answer 25

an employee of an insurance company who evaluates an individual risk factors and assigns premium amounts

Question 26

uninsured/underinsured coverage

Answer 26

auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses

Question 27

renters insurance

Answer 27

a type of insurance available to a person renting that covers the policy holders belongings and liability coverage

Question 28

disability insurance

Answer 28

a type of insurance paid to an individual if they are injured and unable to work for a length of time

Question 29

preferred provider organization

Answer 29

a health insurance plan in which providers agree to deliver services for discount fees, patients can go to any provider, but using nonparticipating providers results in higher costs to the patients

Question 30

health maintenance organizations

Answer 30

a health insurance plan in which patients receive health care from designated providers