| A | B |
|---|
| Risk | Uncertainty about a situation's outcome |
| Insurance | An arrangement between an individual and an insurer to protect against risk |
| Policy | A contract between the individual and the insurer specifying the terms of the insurance agreement |
| Policyholder | The consumer who purchased the policy |
| Premium | The fee paid to the insurer to be covered under the specified terms |
| Deductible | The amount paid out of pocket by the policyholder for the initial portion of a loss before the insurance coverage begins |
| Auto Insurance | Help individuals limit their financial losses when an automobile accident occurs |
| Liability Insurance | Minimum amount of insurance required by law |
| Medical Payment Insurance | Covers injuries sustained by the driver of the insured vehicle or any passengers regardless of fault |
| Uninsured or underinsured motorists insurance | Covers injuries or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance |
| Physical Damage Insurance | Covers damage caused to the vehicle |
| Collision | covers a collision with another object, car, or from a rollover |
| Comprehensive | covers all physical damage losses except collision and other specified losses |
| Health insurance | Provides protection against financial losses resulting from injury, illness, and disability |
| Life Insurance | Purpose is to provide money for family members or dependents when a wage earner dies |
| Dependent | A person who relies on someone else financially |
| Contract | A policy which states the amount to be paid to the beneficiary upon the insured person’s death |
| Beneficiary | The recipient of any policy proceeds if the insured person dies |
| Disability Insurance | Replaces a portion of one’s income if they become unable to work due to illness or injury |
| Homeowner’s Insurance | combines property and liability insurance into one policy to protect a home from damage cost due to perils |
| Peril | an event which can cause a financial loss like fire, falling trees, lightning, or others. Usually not flooding |
| Property Insurance | Protects the insured from financial losses due to destruction or damage to property or possessions |
| Liability Insurance | Protects the insured party from being held liable for other’s financial losses |
| Renter’s Insurance | Protects the insured from loss to the contents of the dwelling rather than the dwelling itself. |
