Insurance Vocab Flashcards
Personal Property Floater
additional insurance policy for a particular item which is usually extremely valuable
HO-6
type of renter insurance policy; specifically for condominiums; protects personal property and additions or improvements to living unit
HO-5
type of home insurance policy; considered a comprehensive form policy; expands the coverage of the HO-3
HO-4
type of renter insurance policy; protects personal property; does not cover the building or structure
HO-2
type of home insurance policy; considered a broad form policy; covers falling objects, weight of snow, ice or sleet
HO-1
type of home insurance policy; considered a basic policy; covers hail, lightning, damage from vehicles
HO-3
type of home insurance policy; considered a special form policy; covers all basic and broad form risks, except those specifically excluded
Home and Property Insurance
coverage which provides protection for an insured home and its associated financial risks
Personal Liability
fact the policyholders are held responsible for any accident which occurs on their property
Mortgage Protection Life Insurance
insurance policy designed specifically to repay mortgage debt in the event of the death of the borrower
Extended Warranty
extension of the coverage period on an item in which the manufacturer guarantees to repair or replace if necessary
Term Life Insurance
policy protects against the loss of life for a specified period of time and only pays benefits if an individual dies during the period in which the policy is covered
Universal Life Insurance
adjustable-benefit life insurance which allows policyholders to change the amount of insurance as their needs for insurance changes
Life Insurance
insurance which protects the people who depend upon the policyholder from extreme financial losses caused by the policyholder’s death
Whole Life Insurance
permanent policy in which the policyholder pays a specified premium each year for the duration of entire life
Debt Cancellation Coverage
contract where a bank agrees to cancel all or part of an obligation to repay a loan due to a specific event
Credit Line Coverage
insurance policy designed to pay off a borrower’s debt if the borrower dies
Guaranteed Renewability
insurance policy which allows an individual to still be covered as long as he or she pays the premium
Mortgage Protection Life Insurance
insurance policy designed specifically to repay mortgage debt in the event of the death of the borrower
Accidental Death and Dismemberment Life Insurance
insurance policy which pays out only if the policyholder is killed/injured in a specific type of accident
Disability Income Insurance
insurance which provides regular supplementary income when a person is unable to work at his or her regular employment because of accident, illness or pregnancy
Duration of Benefits
specified period of time in which benefits will be paid
Social Security
provides retirement income and disability benefits
Worker’s Compensation
insurance which covers workers who are injured or become ill due to workplace conditions
Elimination Period
period of time for which individuals wait before they can begin collecting benefits
Hospital Indemnity Plan
insurance which pays benefits when the policyholder is hospitalized
Dental Insurance
insurance which pays benefits when the policyholder is hospitalized
Major Medical Expense Insurance
financial institution agreeing to compensate for losses of individuals or businesses resulting from damages, injury, treatment or hardship
Basic Health Insurance
insurance which includes hospital expense coverage, surgical expense coverage and physician expense coverage
Reimbursement
pays the policyholder back for actual expenses
Prescription Coverage
insurance which covers the expense of drugs prescribed by a doctor
Indemnity
provides the policyholder with specified amounts regardless of how much the actual expenses may be
Long-Term Care Insurance
insurance which provides coverage for the expense of daily help when a person becomes extremely ill or disabled and is unable to take care of self
Point of Service Plans (PSP)
insurance plan uses a network of participating physicians and medical professionals contracted to provide services
Health Maintenance Organizations (HMO)
health insurance plans which directly employ or contract selected medical professionals to provide health care services
Preferred Provider Organizations (PPO)
network of medical service providers who agree to charge lower cost to enrolled patients than non-network providers
COBRA
acronym for Consolidated Omnibus Budget Reconciliation Act of 1986
Medicaid
medical assistance program offered to certain low-income individuals and families
Health Insurance
form of protection which eases the financial burden people may experience as a result of medical expenses
Medicare
federally funded health insurance program available mainly to people over the age of 65 and to people with certain disabilities
Out-of-Pocket Limit
limits the amount of money the policyholder must pay for the co-insurance
Aggregate Limit
maximum dollar amount paid for all benefits in a year
Co-Insurance
percentage of the medical expenses the policyholder must pay in addition to the deductible amount
Internal Limit
covers only a fixed amount for a certain expense
Rating Territory
residential location used to determine the automobile insurance premium
Vehicle Type
year, make and model of a vehicle
Extended Warranty
extension of the overage period on an item in which the manufacturer guarantees to repair or replace if necessary within a specific time period
Assigned Risk Pool
consists of people who cannot obtain an insurance policy from regular carriers due to poor driving record or other factors
Insurance Company
financial institution agreeing to compensate for losses of individuals or businesses resulting from damages, injury, treatment or hardship
Automobile Insurance
insurance which reduces the financial impact of an automobile accident
Property Damage Liability
insurance which applies when the policyholder damages the property of another person
Bodily Injury Liability
insurance which covers physical injuries to others caused by an automobile accident for which the policyholder was responsible
Collision Insurance
insurance which covers damage to the policy holder’s car when it is involved in an accident
Comprehensive Insurance
insurance which covers physical damage to an individual’s car which occurs as a result of a non-collision incident
Medical Payments Coverage
insurance which applies to the medical expenses of anyone who is injured in policyholder’s automobile, no matter who was at fault for the accident
Uninsured Motorist Protection
insurance which covers costs if an individual is involved in a car accident with an uninsured driver
Pure Risk
risk in which the only possibility is loss and there is no beneficial result
Hazard
anything which increases the likelihood of loss through some peril
Negligence
failure to take ordinary or reasonable care to prevent accidents from happening
Peril
anything which may cause a possible loss
Speculative Risk
risk which carries a chance of either loss or gain
Co-Pays
fixed amounts an individual pays for a covered health care service in order to receive medical attention
Deductible
portion of a claim the policyholder must pay before the insurance company provides the benefits of the policy
Premium
amount of money which an individual or business must pay for an insurance policy for a define time period
Risk
accident or trouble which no one can predict
Policy Limits
maximum amount an insurance company will pay an individual for a claim which the policy covers
Insurance
maximum amount an insurance company will pay an individual for a claim which the policy covers
Coverage
scope of protection provided under an insurance policy
Insurance Policy
written contract effecting insurance
Insurance Company
financial institution agreeing to compensate for losses of individuals or businesses resulting from damages, injury, treatment or hardship
