Insurance Basics
This is the amount of money paid by an individual to an insurance company for coverage.
What is a premium?
Almost all states require this form of auto insurance coverage to protect other drivers health and property when you are at fault.
What is liability coverage?
An insurance company might charge more to insure the property in your apartment if you live in a disaster prone area because this is higher.
What is the risk?
This type of insurance typically covers losses related to your home, its contents, and liability for injuries on the property.
What is homeowners insurance?
This is the amount the policyholder must pay out of pocket before the insurance company begins to cover the remaining costs.
What is a deductible?
You may want this type of auto insurance coverage if a tree falls on your car.
What is comprehensive coverage?
It might seem counter intuitive, but this type of insurance does not cover the structure of a building that is rented out.
What is renter’s insurance? (It is covered by homeowner's insurance/Is the landlord's responsibility)
This type of insurance provides income replacement if you are unable to work due to an injury or illness?
What is disability insurance?
This is a formal request made by the insurance policyholder to the insurance company for compensation or reimbursement for a covered loss or event.
What is a claim?
This type of insurance protects you in an accident where the individual at fault does not meet the legal requirements.
What is uninsured/Under-insured coverage?
If your friend is hurt while visiting your property and it was your fault you will want to make sure your renter’s insurance has this.
What is liability coverage?
Obtaining a higher level of coverage will probably mean paying more for this.
What are premiums?
This is an acceptance of risk and/or an obligation or responsibility to pay a certain amount.
What is liability?
This is the amount paid by insurance to cover an accident victim’s $64,000 medical bill if the policy holder’s insurance has a $50,000 coverage limit.
What is $50,000?
This type of person may want to have a renter’s insurance policy even though some of their items might be covered under their parent’s homeowner’s insurance.
What is a college student?
These two types of insurance are different but similar. One covers a specified period while the other covers the entire life time.
What are term and whole life insurance?
These are the two actions taken by an insurance company when a policyholder files a claim.
What are assess the situation (investigate) and calculate the amount paid based on the policy.
There are five factors which affect the price of your auto insurance coverage, list them.
Your deductible, vehicle, mileage, driving history, & personal information.
These are risks associated with not only failing to purchase renter’s insurance but any type of insurance.
What are covering all the costs out of pocket, significant debt, and financial ruin?
This is the way insurance companies make money.
What is charging more in premiums than they pay out in claims each year.