Insurance Vocabulary
Terms
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- Claim
- a policyholder's request for payment for a loss that is covered by the insurance policy
- Coinsurance
- The sharing of expenses by the policyholder and the insurance company
- Deductible
- the amount you must pay before the insurance company pays a claim
- insured
- the person for whom risk is assumed by an insurance company
- liability risk
- potential losses to others that occur as a result of injury or damage that you may have caused
- policy
- a contract that states the conditions to which the insurance company and the policyholder have agreed
- Premium
- the amount that a policyholder must pay for insurance coverage
- self-insurance
- an individual, family, or business assuming the total risk of economic loss.
- bodily injury liability coverage
- insurance coverage that prtects you from claims resulting from injuries or deaths for which you are found to be at fault
- collision coverage
- insurance coverage that prtects a car owner against financial losses associated with the damage from a collision with another car or object or from the car turning over
- comprehensive coverage
- insurance prtection against almost all losses except those caused from a collision or from the car turning over
- compulsory insurance laws
- laws that require you to carry certain types of automobile insurance before your car can be licensed.
- financial responsability laws
- laws whereby your driver's license will be suspended or taken away if you cause an accident and cannot pay for the damages either through insurance, your savings, or the sale of property
- medical payments coverage
- insurance coverage that provides medical expense prtection for the policyholder, immediate family member, and guests while in the insured person's car.
- no-fault insurance laws
- a plan which people injured in automobile accidents are required to collect for their financial losses from their own insurance companies no matter who is at fault.
- property damage liability coverage
- insurance protection against claims if your car damages someone else's property and you are at fault
- uninsured motorist coverage
- insurance coverage that protects the policyholder and immediate family members against losses resulting from injuries cause by a hit-and-run driver or by a driver who has no insurance and inadequate money to pay claims
- adjuster
- an insurance company representative who determines the extent of loss and pays policyholders according to terms of the policy.
- depreciation
- the decrease in the value of property as it becomes older and wears out
- homeowner's policy
- a package-type insurance policy designed to fit the needs of most homeowners whishin to insure their homes and property.
- inventory
- a list of goods showing the original cost of each item, when it was purchase, and how long it is expected to last.
- perils
- the causes of loss, such as fire, wind, or theft.
- personal liabilty coverage
- insurance that protects you from claims arising from injuries to their people or damge to their people's property cause by you, your family, or your pets.
- personal property
- property that is not attached to the land
- real property
- property that is permanently attached to land
- replacement insurance
- insurance that replaces the exact cost of an item