Insurance Vocab
This is the money paid to an insurance company to purchase a policy.
What is a premium?
In most states, this specific type of auto insurance coverage is required by law.
What is liability coverage?
This is a fixed amount you pay for a covered health care service, usually at the time you receive the service.
What is a copayment?
Renters insurance covers the tenant's personal belongings, not this part of the property which is covered by the landlord's policy.
What is the building structure (or the apartment building itself)?
The primary purpose of all types of insurance is to protect people from this.
What is financial loss (or risk)?
The amount of money you must pay out-of-pocket for covered medical care expenses or car repairs before your insurance company begins to pay.
What is a deductible?
This type of coverage pays for damage to your own car if you hit another car or an object like a tree or a house.
What is collision coverage?
This government insurance plan covers healthcare needs for people aged 65 and older.
What is medicare?
This type of coverage in a renter's policy can protect you if you are found legally responsible for injuries to others or damage to other people's property in your rented home.
What is liability coverage?
This term refers to anything that increases the likelihood of a loss occurring.
What is a hazard?
This is the paperwork you fill out after a loss asking your insurance company to pay for your damaged, lost, or stolen property.
What is a claim?
This type of coverage protects your car from damage that is not a result of a collision, such as theft, fire, or a natural disaster like hail.
What is comprehensive coverage?
After you have met your deductible, you may still be required to pay a percentage of your medical costs. This percentage is called this.
What is coinsurance?
Name one common natural disaster that is typically NOT covered by a standard renter's (or homeowner's) insurance policy.
What is a flood (or an earthquake)?
An individual who has an insurance policy is also known by these two terms.
What are the insured (aka policy holder/assured)?
This is the legal responsibility for the financial cost of another person's losses or injuries.
What is liability?
Maintaining an accident-free driving record and having safety features in your car are factors that could help you get this.
What are discounts?
The main reason it is important to have health insurance, even if you are young and healthy, is to protect yourself from this type of unexpected event.
What is a major financial loss from a health emergency/unexpected injury/illness?
This type of coverage reimburses you for the current market value of your lost items, minus depreciation.
What is Actual Cash Value (ACV) coverage?
This additional property insurance can be added to a policy to cover a specific item of high value, like an expensive piece of jewelry.
What is a personal property floater?
This term refers to the sharing of individual risk among a large group of people to make losses more affordable for all.
What is risk pooling?
Your friend borrows your car and crashes into your neighbor's fence. This specific part of your policy would cover the damage to the fence.
What is property damage liability?
These are specific conditions or circumstances for which a health insurance policy will not provide benefits.
What are exclusions?
This superior type of coverage reimburses you the money needed to purchase brand new items of like kind and quality to those that were lost.
What is Replacement Cost Coverage?
This principle is why insurance companies are able to provide coverage and still make a profit: they collect premiums from many people to cover the losses of a few.
What is the law of large numbers (or risk pooling)?