Insurance Vocab Flashcards
What is insurance?
An arrangement between an individual and an insurer to protect against the risk of loss
What is a policy in insurance?
A contract between the insurer and the policyholder specifying the terms of coverage
Who is a policyholder?
The consumer who purchases the insurance policy.
What is a premium?
The fee paid each month to be covered under specified terms of an insurance policy.
What is a deductible?
The amount paid out of pocket by the policyholder for the initial portion of a claim before coverage begins.
What is automobile insurance?
An arrangement to protect against losses from accidents involving vehicles.
What does liability coverage in automobile insurance cover?
Covers the insured for damages to other people or their property.
What is medical payment coverage in automobile insurance?
Covers injuries sustained by the driver or passengers in an accident.
What does uninsured or underinsured motorist coverage protect against?
Covers injury or damage caused by a driver with insufficient insurance.
What is property damage coverage in automobile insurance?
Covers damages to the insured’s vehicle from collisions and other physical damages.
It typically includes collision and comprehensive coverage.
What is health insurance?
Protection against losses from injury, illness, or disability.
What is co-insurance?
The percentage of the cost of a covered health care service you pay after the deductible.
What is a group plan in health insurance?
Health insurance offered by an employer to employees and their dependents.
What is a preexisting condition?
A health condition that existed before the start of a new insurance coverage.
What is life insurance?
A contract between an insurer and a customer specifying a sum to be paid to a beneficiary upon the insured’s death.
Who is a beneficiary in a life insurance policy?
The recipient of the policy’s benefits if the insured person dies.
What is term life insurance?
Insurance that covers a person for a specific period, typically between 5 to 20 years.
What is whole life insurance?
A type of permanent life insurance that covers the insured for life as long as premiums are paid.
Whole life insurance often builds cash value over time.
What is disability insurance?
Insurance that replaces part of the income for individuals who can no longer work due to disability.
What does homeowners insurance cover?
Covers property and liability to protect the home against various perils.
What is property insurance?
Covers the insured’s house and everything within it.
