Insurance basics
A payment made to the insurance company, often monthly, to keep the policy active.
What is a premium?
This optional coverage pays for damage to your vehicle resulting from a collision with another vehicle or object, even if you are at fault.
What is collision coverage?
The fixed dollar amount a patient pays for a covered service at the time of each visit, like to a doctor's office or when picking up medicine.
What is a copayment (or co-pay)?
This type of insurance protects a tenant's personal property in case of damage or theft.
What is renters insurance?
Renters) The specific type of policy endorsement that removes depreciation and allows a tenant to replace their ten-year-old laptop with a brand new one.
What is Replacement Cost Value (RCV)
A payment made to the insurance company, often monthly, to keep the policy active.
What is a premium?
This type of coverage is legally required in most states and pays for injuries and property damage you cause to other people in an accident.
What is liability coverage?
The percentage of medical costs you must pay for a covered service after you've met your deductible, such as 20% of the bill.
What is coinsurance?
This coverage pays the full cost to repair or replace a damaged item with a brand new one of similar quality, without factoring in depreciation.
What is replacement cost value (RCV)?
The maximum amount you are financially responsible for in a calendar year; once this limit is reached, the insurance plan covers 100% of all further covered services.
What is the out-of-pocket maximum
The amount a patient must pay to a provider before health insurance starts to pay.
What is a deductible?
This coverage pays for damage to your car from things that are not collisions, such as theft, vandalism, fire, hail, or hitting a deer.
What is comprehensive coverage?
This plan offers more flexibility, allowing you to see both in-network and out-of-network providers (though at a higher cost for the latter) and typically does not require referrals.
What is a Preferred Provider Organization (PPO)?
The formula used to calculate ACV: Replacement Cost minus this equals the payout (before the deductible is applied)
What is depreciation?
This federal insurance is for people 65 years old or with certain disabilities.
What is Medicare?
In insurance terms, this is the specific term for the uncertainty or chance of loss occurring.
What is risk?
This coverage protects you if you are in an accident caused by a driver who has no insurance or insufficient insurance to cover the costs.
What is uninsured/underinsured motorist coverage?
A health plan that combines aspects of an HMO and a PPO, requiring a PCP referral for in-network care but allowing out-of-network options at a higher cost.
What is a Point of Service (POS) plan?
The value used to calculate a claim payout when depreciation is factored into the item's worth at the time of the loss.
What is Actual Cash Value (ACV)?
This type of health plan requires in-network use and a PCP referral.
What is an HMO (Health Maintenance Organization)?
The initial portion of a covered loss or medical expense that the insured is responsible for covering before the insurer's liability begins.
What is a deductible?
This state system requires your own insurance to pay for your medical expenses and lost wages after an accident, regardless of who was at fault.
What is no-fault insurance (or Personal Injury Protection/PIP)?
This 2010 law expanded Medicaid and prevents insurers from rejecting coverage based on a patient's pre-existing condition.
What is the Affordable Care Act (ACA) (or Obamacare)?
This type of policy may pay the ACV first, and then pay the remaining difference to reach the RCV after the policyholder submits receipts for the new items.
What is a replacement cost value (RCV)
Your percentage of costs you must pay after meeting your deductible.
What is co-insurance?