Insurance Basics
What is insurance?
A contract that protects against financial loss.
What is an insurer?
The company that provides insurance coverage.
What is a risk-management program?
A plan to reduce and handle risks.
What is property insurance?
Insurance that protects buildings and personal belongings.
What is automobile insurance?
Insurance required in most states to legally drive.
What is a policy?
The written contract between the insurer and insured.
What is the insured?
The person or business covered by insurance.
What are exclusions?
Parts of a policy that are NOT covered.
What is fire insurance?
Insurance that covers damage caused specifically by fire.
What is no-fault insurance?
Insurance where your company pays for your injuries regardless of who caused the accident.
What is a premium?
The amount you pay for insurance coverage.
Who is a beneficiary?
The person who receives money from a life insurance policy.
What are endorsements?
Changes or additions made to an insurance policy.
What is comprehensive insurance?
Covers damage from events other than collisions, like theft or storms.
What is liability insurance?
A type of casualty insurance that protects against lawsuits.
What does indemnify mean?
To compensate someone for a loss.
What is insurable interest?
A financial interest in something that could cause loss if damaged.
What is coinsurance?
When the insured and insurer share the cost of a claim.
What is collision insurance?
Covers damage to your car from hitting another vehicle or object.
What is automobile insurance?
Insurance that covers accidents involving vehicles.
What is risk?
A situation that involves the chance of loss or damage.
What is moral hazard?
When someone behaves carelessly because they know they are insured.
What is liability insurance?
Insurance that protects you if you are legally responsible for harming someone.
What is property insurance?
A broad type of insurance that covers many different property risks.
What is casualty insurance?
Insurance that covers personal injury or property damage caused by negligence.