Vocabulary
The amount paid (usually monthly or annually) to maintain an insurance policy.
Premium
A health insurance policy has a $500 deductible. If medical bills total $2,000, how much does the insured pay before insurance covers the rest?
$500
This is the correct formula for calculating Interest.
I = PRT (Principle x Rate x Time)
A business model where the buying and selling of products or services take place on the Internet.
E-Commerce
This state is cited as having the most expensive auto insurance.
Florida
The amount the policyholder pays out of pocket before the insurer begins to pay on a claim.
Deductible
A car insurance premium is $1,200 per year (annually). How much is the monthly payment?
$100
These two things need to be in the same units to calculate Interest.
Rate and Time
A business that buys goods from wholesalers, manufacturers, and other retailers, and then to consumers for a profit.
Retail Business
This state is often near the top expensive auto insurances due to severe weather and high claim frequency.
Louisiana
A legal contract between the insurer and the insured that explains coverage, terms, and conditions.
Policy
A car insurance premium is $120 per month. How much is the annual cost?
$1,440
This is how you convert annual rate to monthly rate.
Divide by 12
A business model in which customers pay a recurring fee in exchange for a company’s product(s) or service(s).
Subscription-Based Business
This state has a low population, and fewer severe accidents which keep costs down.
Maine
A fixed fee paid at the time of service (e.g., $25 per office visit) separate from deductible or coinsurance.
Copayment
A renter’s insurance policy costs $18 per month. What is the total cost for 6 months?
$108
Payments and credits on a monthly balance (add, subtract, multiply, or divide).
Are subtracted
A business model where private individuals buy from and sell to each other, generally in an online environment.
Consumer to Consumer (C2C)
This state has the lowest auto insurance rates.
Vermont
No-Fault Insurance
A policyholder has a $1,000 deductible and files a claim for $750 in damages. How much does the insurance company pay?
$0 (the damages are less than the deductible)
Step 1 to calculating a monthly payment for an amortized loan.
Divide by 1,000
A business model in which a retailer pays a seller for merchandise after the item sells.
Consignment
The #1 in auto insurance.
State Farm