Lesson 8

Question 0

Premium

Answer 0

A regular payment made in exchange for protection

Question 1

Insurance

Answer 1

Protection against financial loss from illness, injury, or damage.

Question 2

Policy

Answer 2

A legal contract

Question 3

Claim

Answer 3

A formal request for payment from the insurance company

Question 4

Shared risk

Answer 4

No single policyholder must bear the burden of a financially devastating loss

Question 5

Insurable interest

Answer 5

Must be something of value that, if lost, would cause you financial harm

Question 6

Appraisal

Answer 6

An expert’s determination of the value of a piece of property

Question 7

Rider

Answer 7

A special addition to an insurance policy that covers a specific type of loss

Question 8

Property insurance

Answer 8

Insurance that protects from financial loss when things you own are stolen, damaged, or destroyed

Question 9

Liability insurance

Answer 9

Protects you from losses that you cause others

Question 10

Personal insurance

Answer 10

Insurance that protects you, your spouse, and your children against financial loss due to illness, disability, or death

Question 11

Bodily injury liability coverage

Answer 11

Insurance that protects you against financial loss, including the cost of your legal defense, when you are legally responsible for injuring other people in an automobile accident

Question 12

Property damage liability coverage

Answer 12

Pays for damage you caused to another person’s property

Question 13

Medical payments coverage

Answer 13

Pays medical and funeral expenses for you, your family members, and other passengers in your car because of injuries sustained in an accident–no matter who caused the accident

Question 14

Uninsured/underinsured motorist coverage

Answer 14

Pays Medical and damage expenses for you and your passengers caused by a driver without insurance or with too little insurance to cover the loss

Question 15

Comprehensive coverage

Answer 15

Pays for damage to your car caused by something other than a collision

Question 16

Collision coverage

Answer 16

Pays for damage to your car caused by colliding with another car or object

Question 17

Deductible

Answer 17

An amount you pay before the insurance company pays anything

Question 18

Point

Answer 18

Bad mark recorded on a person’s driving record because of traffic violations and accidents

Question 19

Assigned risk

Answer 19

You will have to pay very Hugh premiums for coverage

Question 20

Homeowner’s insurance

Answer 20

Provides personal property and liability protection for your home

Question 21

Umbrella policy

Answer 21

Provides additional liability protection beyond that included in an automobile or homeowner’s policy

Question 22

Renter’s insurance

Answer 22

Provides about the same property and liability coverage as a homeowner’s policy, but doesn’t cover the structure itself or accidents that take place outside of your rented apartment or house

Question 23

80 percent rule

Answer 23

Your insurer isn’t required to reimburse you for the total amount of a loss unless your policy covers at least 80 percent of your home’s actual replacement value at the time of your loss

Question 24

No-fault insurance

Answer 24

Each person’s insurance company pays for that person’s losses, no matter who caused the accident

Question 25

Malpractice insurance

Answer 25

Insurance doctors buy to protect themselves against devastation loss

Question 26

Generic drugs

Answer 26

Medications that have the same chemical composition as their brand name counterparts but are less expensive

Question 27

Fee-for-service plan

Answer 27

(Indemnity plan) you pay for health services as you receive them

Question 28

Coinsurance

Answer 28

The portion you pay for the expenses

Question 29

Reasonable and customary charges

Answer 29

The fees that the insurance company determines are normal in your geographic area

Question 30

Managed care plans (prepaid plans)

Answer 30

You or your employer pay for health coverage in advance instead of paying for services as you use them

Question 31

Capitation

Answer 31

Paying doctors and hospitals a fixed amount per year for each insured patient, no matter what services they provide

Question 32

Copayment

Answer 32

A specific amount you pay for particular services, regardless of the cost of those services

Question 33

Health maintenance organization (HMO)

Answer 33

A managed care plan that charges a set amount for each member each year

Question 34

Primary care physician

Answer 34

The doctor coordinates your care

Question 35

Preferred provider organization (PPO)

Answer 35

The managed care plan that is most like a fee-for-service plan; PPO contracts with doctors, hospitals, and other health care providers to offer care to its members at reduced costs

Question 36

Point-of-service plan (POS)

Answer 36

You must select a primary care physician within the POS plan, but you can go outside the POS plan for health care

Question 37

Open enrollment

Answer 37

The specified period of time when you begin a job and can enroll in your employer’s plan

Question 38

COBRA

Answer 38

Requires your employer to offer to continue you health coverage for 18 months after you leave

Question 39

Pre-existing condition

Answer 39

A medical condition diagnosed or treated before you joined a new insurance plan

Question 40

Medicare

Answer 40

Designed to proved low-cost medical insurance for older Americans

Question 41

Medigap

Answer 41

Coverage sold by private insurance companies, not the gov.

Question 42

Medicaid

Answer 42

Helps ensure that people without the means to pay for health insurance can receive health care

Question 43

Workers’ compensation

Answer 43

An insurance program that pays expenses for work-related injuries, illnesses, and death

Question 44

Patient’s bill of rights

Answer 44

Specifies consumers’ health care rights and responsibilities

Question 45

Referral

Answer 45

An approval to seek services from a specialist

Question 46

Death benefit

Answer 46

The payment given if you die

Question 47

Beneficiary

Answer 47

The person you specify for the payment if you die

Question 48

Term life insurance

Answer 48

Pays a death benefit if the policyholder dies within a specific period of time, it’s term

Question 49

Permanent life insurance

Answer 49

Provided a death benefit plus a savings plan, and the coverage lasts throughout the policyholder’s life