Terminology 1
A form filed to request payment for losses covered in an insurance policy is called _______
Claim
The person or business that purchases an insurance policy is called a _____ _____
Policy Holder
Person or persons designated to receive the proceeds of a life insurance policy in the event of the insured’s death is called the ______
Beneficiary
An amount deducted from an insurance settlement: the amount of loss the insured agrees to accept is called the ______
Deductible
The amount of income subject to tax after adjustments, deductions, and exemptions is called ___ ____
Taxable Income
Interest that is computed on the principal for the time of the transaction is called _____ ______
Simple Interest
Covers a predetermined portion of the cost of healthcare is called ____ ______
Health Insurance
Interest rate that banks charge their best or most creditworthy customers is called the ____ _____
Prime Interest
Money that builds on itself; that is, it earns money on the interest that is reinvested as well as on the original principal is called _____ ______
Compound Interest
An agreement providing for the payment of a stipulated sum to one or more beneficiaries upon the death of the insured person is called _____ _____
Life Insurance
The amount of income remaining after adjustments is called ___ ___ ____
Adjusted Gross Income
The time for which an insurance policy is in effect is called a ______
Term
The amount paid on the principal for the privilege of using someone else’s money or the amount earned on investment money is called the _______
Interest
The amount an insurance company agrees to pay on a claim is called a ____
Settlement
The amount of insurance purchased is called ___ ___
Face Value
The individual or company receiving the insurance protection is called an ________
Insured
Items that reduce your calculated income tax; for example, credit for child care and dependent care expenses are called ________ ________
Tax Credits
A qualifying employer-sponsored plan allowing employees to have pre-tax deductions from their paychecks deposited into a savings account that can be used for only medical expenses ____ ___ ___
Health Savings Account
The initial amount borrowed or invested for a certain period of time is called the _____
Principal
A term used to describe the type or amount of loss protected against by an insurance policy is called ___
Coverage
An arbitrary rate set by the taxing body is called the ______ _______
Assessed Rate
The percentage charged to lend or borrow money is called the ______
Rate
A written contract between the insurance company and the insured that explains the benefits and limitations of the protection purchased is called a ___
Policy
Payment to the insurance company for the insurance policy is called the _____
Premium
Protects against the cost of loss is called _____
Insurance