insurance vocab Flashcards
premium
the specified amount of payment required periodically by an insurer to provide coverage under a plan for a defined period of time
actuary
an employee of an insurance company who calculates risk based on loss percentages and determines insurance rates and premiums
collision coverage
auto insurance that protects you against costs to repair your own vehicle after a crash
comprehensive coverage
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
conditions of the policy
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
copay
a set dollar amount that you agree to pay each time you receive medical treatment
while your insurance company pays the rest
declarations page
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
deductible
the amount of money you agree to pay towards your loss before the insurance will begin paying
extended warranty
an additional form of protection that can be purchased to extend a manufacturers warranty on consumer goods like phones and electronics
insurance
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
insurance agent
an employee of an insurance company who sells insurance policies and provides customer service
insurance fraud
an act on the part of either the buyer or the seller of an insurance contract in an attempt to gain money illegally
insurance policy
a contract in which an individual or entity receives financial protection or reimbursement against losses
insuring agreement
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
loss
when someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them
liability coverage
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
minimum liability limit
the lowest amount of auto insurance coverage that one can have to be legally allowed to drive
depends on state
personal injury protection
auto insurance that protects you against costs of your own medical bills if you are involved in a car accident
probability
the chance of something happening or not happening within a certain number of occurrences
quote
an estimate of what premium you would pay for a certain insurance coverage plan
risk
a situation involving exposure to danger harm or loss
claim
a formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy
risk pooling
the spreading of financial risk evenly among a larger number of contributors to the program
maximum out of pocket expense
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
underwriter
an employee of an insurance company who evaluates an individual risk factors and assigns premium amounts
uninsured/underinsured coverage
auto insurance that protects you against another driver not having enough coverage to pay the entirety of your losses
renters insurance
a type of insurance available to a person renting that covers the policy holders belongings and liability coverage
disability insurance
a type of insurance paid to an individual if they are injured and unable to work for a length of time
preferred provider organization
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
health maintenance organizations
a health insurance plan in which patients receive health care from designated providers
