Insurance Vocab
This insurance professional acts as a middleman between clients and insurance companies, helping clients find the best coverage for their needs.
What is a broker?
This type of insurance pays for your injuries after an accident, no matter who caused it.
What is a personal injury protection (PIP)?
This is the amount Jasmine pays every time she visits her doctor, such as $25 for each visit.
What is a co-payment?
This type of insurance protects your personal belonging in a rental home or apartment.
What is renters insurance?
After a kitchen fire destroys Tara’s apartment, the insurance company agrees to pay the full price to buy a new fridge, a new bed, and new clothes—even though all her old items were used.
What is replacement value?
This person evaluates the rest of insuring a client and determine the terms and pricing of an insurance policy.
What is an underwriter?
If you hit a tree while driving, this insurance will help pay for repairs to your car.
What is collision insurance?
After Mateo meets his deductible, he must pay 20% of the medical bill, while his insurance pays the other 80%.
Your landlord must give you this written agreement that explains rent, rules, and responsibilities.
What is a lease?
A teen driver will usually pay more for insurance because of this factor
What is age?
This is the possibility of losing money or experiencing damage in a financial transaction or investment.
What is risk?
This insurance pays for damage caused to there's people or their vehicles when it's your fault.
What is liability insurance?
This term describes the maximum amount a person will pay in a year before insurance pays 100% of the costs.
What is the out-of-pocket maximum?
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 is money taken out of your paycheck to help pay for government programs like social security and medicare
What are payroll taxes?
This professional analyzes financial risk using mathematics, statistics, and data to help insurance companies set premiums.
Who is an actuary?
Covers damage to your vehicle caused by a fire, theft or hitting an animal rather than a crash.
What is comprehensive coverage?
This term describes the group of doctors and hospitals that cost you the least money to visit because they have contracts with your insurance company.
What is a health plan network?
After a fire destroys Jordan’s apartment, the insurance company agrees to pay him the full cost to buy a brand-new laptop, even though the one he lost was three years old.
What is replacement value?
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?
This is a request made by a policyholder to an insurance company for payment after a loss or damage occurs.
What is a claim?
Maria is driving home from work when another car runs a red light and crashes into her. The other driver admits the accident was their fault, but they do not have enough insurance to cover Maria’s medical bills or the damage to her car.
What is uninsured/underinsured motorist coverage?
In this type of plan, you must choose a primary doctor and you usually cannot see specialists without a referral, making it cheaper but less flexible.
What is an HMO?
When Maya files a claim for her stolen TV, her insurer subtracts money for three years of wear and tear and only pays her what the used TV was worth not the amount to buy a new one.
What is actual cash value?
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?