Insurance Basics
This term describes the chance that something bad could happen, like damage or loss, that an insurance policy protects against
What is risk?
Your car is stolen during the night, and your insurance pays to replace it. This type of coverage applies?
Comprehensive coverage!
This is a fixed amount you pay every time you visit a doctor or pick up a prescription.
What is copay?
This is the payment you give your landlord every month in exchange for living in their property.
Sadly, rent!
this financial product protects renters‘ belongings from fire, theft, and certain types of damage.
What is renters insurance?
This is the amount of money you must pay out of pocket before your insurance starts to cover costs.
What is a deductible?
Two drivers buy the same car, but one pays more for insurance because they have gotten three speeding tickets in the last year. This factor is causing the higher price.
What is driving record?
You can see a specialist you want without needing a referral. Your plan costs more, but gives more freedom.
What is a PPO plan?
before moving into an apartment, you pay this refundable amount to cover any damages beyond normal wear and tear.
What is a security deposit?
this type of savings account earns interest and is meant for storing money you don’t plan to spend right away.
what is a savings account?
This is the maximum amount of money an insurance company will pay for a covered claim.
What is a limit?
A Florida driver hits a parked car and injures no one, but they still need coverage to pay for the other person’s property damage. This Florida-required coverage applies here.
What is Property Damage Liability (PDL)?
This is a type of plan that requires you to stay in-network and get referrals from your primary care doctor.
What is an HMO?
Your landlord must give you this written agreement that explains rent, rules, and responsibilities.
what is a lease?
You use this 3 digit number to prove how trustworthy you are at paying back loans. A higher number means better rates.
what is a credit score?
When an insured person experiences a loss and asks their insurance company for compensation, they file this.
What is a claim?
You crash into a wall while avoiding a pothole and your own car needs repairs. What is the type of insurance that helps pay for the damage?
Collision Coverage!
A doctor is cheaper because they're part of your plans approved list of doctors.
What is an in-network provider?
This utility expense can vary each month and covers water used for showers, sinks, and toilets.
What is the water bill?
this is money taken out of your paycheck to help pay for government programs like social security and medicare
what are payroll taxes?
This math expert calculates the probability of events and helps insurance companies decide how much to charge for premiums.
Who is an actuary?
Uninsured/underinsured motorist coverage.
Your insurance will start paying 100% of costs once you reach this yearly limit, meaning you pay nothing more for covered services, what is this called?
Out-of-pocket maximum.
when your lease ends and you choose to keep living in the same place, you must sign this to continue renting legally.
What is a lease renewal?
this form is filled out when starting a new job and determines how much tax your employer withholds from your paycheck.
what is a W-4 form?