Vocabulary Terms
An act on the part of either the buyer or seller of an insurance contract in an attempt to gain money illegally.
What is insurance fraud?
Methods practiced by businesses and consumers to protect themselves from financial loss.
What is risk management?
Auto insurance that protects you against medical costs for the bodily injury of others and damages to the property of others if you are at fault in an accident.
What is liability insurance?
Insurance paid to named beneficiaries when the insured person dies.
What is life insurance?
A type of insurance paid to an individual if they are injured and unable to work for a short length of time.
What is short term disability insurance?
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy.
What is a claim?
Driver's education, fire alarms, employee safety training are typically offered as a risk management strategy know as this.
What is risk reduction?
This insurance earns a cash value and is good for 100 years or your entire life..
What is whole life insurance?
A federal and state assistance program that pays for health care services for people who cannot afford them.
What is Medicaid?
A form of property insurance, available to renters, that covers losses to their personal property and protects the insured person from liability claims.
What is renter's insurance?
The amount of money you agree to pay towards your losses before your insurance coverage will begin paying.
What is deductible?
A legal principle that holds individuals responsible for the risks they knowingly and willingly take on. This means that if a person engages in an activity with known dangers, they may give up their right to seek compensation for injuries caused by those risks.
What is risk assumption?
This protects you if you’re injured or your vehicle is damaged by a driver who has no insurance or insufficient insurance.
What is uninsured motorist (UM) auto insurance.
This type of life insurance is for a short time, 5,10, 20 years and generally a less expensive type of insurance.
What is term life insurance?
A type of insurance paid to an individual if they are injured and unable to work for a long period of time.
What is long term disability insurance?
An agreement where you make regular payments to a company and the company promises to pay you money if you suffer a specified injury, illness, loss, etc.
What is insurance?
Purchasing insurance policies, which shifts financial responsibility to an insurer in exchange for premiums.
What is risk transfer?
Driving record, driver's age, type of vehicle, coverage limits?
What are things that affect your insurance premiums?
An individual designated to receive the belongings or assets of another person after that person's death.
What is a beneficiary?
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
What is social security?
A person who compiles and analyzes statistics to calculate risk and determine insurance rates and premiums.
What is an actuary?
A proactive risk management strategy aimed at eliminating potential risks by avoiding activities or decisions that could lead to negative outcomes.
What is risk avoidance?
Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc.
What is comprehensive auto insurance?
A fixed dollar amount that you agree to pay each time you receive medical treatment, such as a doctor's visit or prescription.
What is a copay?
A form of property insurance, available to property owners, that covers losses to the physical structure as well as to their personal property and protects the insured person from liability claims.
What is Home Owners Insurance?