Insurance Basics
The amount a person pays regularly to keep their insurance policy active.
What is a premium?
The auto coverage that pays for injuries and property damage you cause while driving.
is liability auto insurance?
The fixed amount a person pays for certain medical services, such as a doctor visit or prescription.
what is a copay?
Insurance that covers the personal belongings inside a rented home or apartment.
What is renters insurance?
The person who is protected under an insurance policy.
What is the insured?
The amount you must pay out-of-pocket before your insurance begins covering costs.
What is a deductible?
Protection that covers you if a driver with little or no insurance causes an accident involving you.
What is uninsured/underinsured motorist coverage?
The percentage of medical costs a person pays after meeting their deductible.
What is coinsurance?
The coverage in a renters policy that protects belongings from events like fire, theft, or vandalism.
What is personal property coverage?
The maximum amount an insurance company will pay for a covered claim.
What is a policy limit?
The type of insurance coverage that pays for damage or injuries you cause to others.
is liability insurance?
The auto coverage that pays for repairs to your car after it hits another vehicle or object.
What is collision coverage?
A health plan that requires members to use in-network doctors and obtain referrals.
is an HMO?
The part of a rental property renters insurance does not cover because it is the landlord’s responsibility.
is the building or structure?
The chance or likelihood that a loss will occur.
What is risk?
Insurance that protects against non-collision events such as theft, vandalism, or weather damage.
What is comprehensive coverage?
Insurance that covers the difference between a car’s actual cash value and the amount still owed on a loan.
is gap insurance?
The group of doctors, hospitals, and clinics that have contracts with a health insurance plan.
What is a network?
Coverage that helps pay for temporary living expenses if the rental unit becomes uninhabitable due to a covered event.
What is loss of use coverage?
The process insurers use to evaluate risk and determine eligibility and pricing for policies.
What is underwriting?
The amount an insurance company would pay if a stolen bike worth $1,200 is covered under a policy with a $750 deductible.
What is $450?
The amount a driver with liability-only insurance must pay if their own vehicle sustains $3,500 in damage after they rear-end another car.
What is $3,500?
The amount owed if a surgery costs $4,000 and the patient is responsible for 20% coinsurance after meeting their deductible.
What is $800?
The amount an insurer would pay if a $1,000 laptop is stolen and the policy has a $250 deductible.
What is $750?
The part of an insurance policy that lists situations, causes, or items that are not covered.
What are exclusions?