INSURANCE TERMS
A driver pays $150 every month to keep their car insurance active, even if they don’t get into an accident.
What is this monthly payment called?
Premium
I help pay for damage or injuries you cause to other people if an accident is your fault. However, I will not pay for any damage to your car or for your injuries. Who am I?
Liability coverage
A guest slips on a wet floor in your apartment and sues you for injuries.
What type of coverage applies?
Liability coverage
A storm damages the roof and walls of your main house.
What type of coverage applies?
Dwelling
An elderly person (age 70) receives government health insurance to help pay for hospital visits and medical care.
What is this called?
Medicare
The amount of money you must pay out of pocket before your insurance company begins to pay.
What is it called?
Deductible
I help pay for damage to your car caused by things other than a car accident, such as hitting a deer.
What coverage am I?
Comprehensive Coverage
A thief breaks into your apartment and steals your laptop, TV, and clothes.
What type of renters insurance coverage applies?
Personal property
A person takes out a specific type of loan to buy a house and agrees to pay it back over time with interest.
What is this loan called?
Mortgage
A person with a very low income qualifies for government health insurance that helps cover doctor visits, hospital care, and other medical services.
What is this called?
Medicaid
After buying car insurance, Jasmine received a document that explains what damages are covered, what is not covered, how much she must pay, and the rules of her plan. What is this called?
Insurance Policy
If your car is damaged in an accident, I will help pay for the repairs, no matter who was at fault. However, if the damage is caused by something other than a crash, I will not cover it. What type of coverage am I.
Collision Coverage
You sign a document with your landlord agreeing to pay rent every month and follow certain rules while living in the apartment.
What is this document called?
Lease
A homeowner uses their house as security for a loan. If they fail to make payments, the lender can take the house.
What is the house considered in this situation?
Collateral
A person can see any doctor without referrals, but pays higher monthly costs.
What type of health plan is this?
Preferred Provider Organization (PPO)
After someone passes away, their life insurance money does not go to their closest family member, but instead goes to the person listed in the policy.
What is the term for the person listed to receive the money?
Beneficiary
Jordan has auto liability insurance with a policy limit of $12,000. He causes an accident and damages another driver’s car. The repair bill for the other driver’s car is $9,500. Jordan’s own car has $3,000 in damage, but he does not have collision coverage.
How much will insurance pay for Jordan’s car damage?
$0
After a fire, your apartment becomes unlivable, and you must stay in a hotel for two weeks.
What type of coverage helps pay for this?
Loss of use coverage
Mrs. Bennett has homeowners insurance with a $2,500 deductible and a $250,000 coverage limit. A storm damages the roof and several rooms inside the house. The total covered damage is $40,000.
How much will Mrs. Bennett pay before insurance helps?
$2,500
Sofia has health insurance with a $5,000 out-of-pocket maximum. Earlier in the year, she had already paid $4,600 for covered medical expenses. She now receives a hospital bill of $2,000 for a covered service.
How much will Sofia pay?
$400
One insurance plan pays for car accidents only, while another pays for accidents, theft, and vandalism.
What is the word for what insurance pays for?
Coverage
Jordan has collision coverage with a $10,000 coverage limit and a $1,000 deductible. He crashes into a guardrail, and the total cost to repair his car is $14,000.
How much will Jordan pay out of pocket in total?
$5,000
Nia rents an apartment and has renters insurance with a $750 deductible and a $20,000 coverage limit. A kitchen fire destroys her furniture, clothes, and electronics, and the total value of the loss is $25,000.
How much will Nia have to pay out of pocket in total?
$5,750
A homeowner has a policy with a $200,000 limit and a $2,000 deductible. A fire causes $180,000 damage to the home and $40,000 damage to belongings.
How much will insurance pay in total?
$198,000
Brianna has health insurance with a $1,000 deductible, a $40 copay for specialist visits, and a $3,500 out-of-pocket maximum. She has already paid $900 toward her deductible this year. She visits a specialist and receives a covered bill for $600.
How much will Brianna need to pay for this visit?
$140