| A | B |
|---|
| risk | possiblility of incurring a loss |
| economic risk | can be related to property liability and ones own well being |
| personal risk | risk associated with illness, disabiliy, loss of income, unemployment, old age, and premature death. |
| property risk | the risk of damage to or loss of property due to theft, wind, fire, flood, or some other hazard. |
| liability risk | potential losses to others that ocurr as result of injury or damage you may have caused |
| insurance | the plan protection provided by sharing economic losses |
| insurance companies | businesses that provide plan protection against economic loss |
| insured or policy holder | the person for whom the risk is assumed |
| policy | a contract issued by the insurance company for coverage for the policy holder |
| premium | the amount the policy holder must pay for insurance coverage |
| claim | a policy holder's request for payment for a loss that is covered by the insurance policy |
| deductible | an amount you must be before the insurance company pays a claim |
| self insurance | that the individual family or business assumes the total risk of economic loss |
| coinsurance | the sharing of expenses by the policy holder and the insurance company |
| insurance agent | from whom you will buy insurance directly |
| automobile liability insurance | to protect yourself against financial loss if you injure someone else or damage someone else's property in automobile accident |
| body injury liability coverage | protects the insured from claims resulting from injuries or deaths for which the insured is found to be at fault. |
| medical payment coverage | policy holders and their family members are covered if they are injured while riding in their car or someone else's car |
| uninsured motorist coverage | protects against injuries that are caused by hit and run drivers or ones who have no insurance or money to pay claims |
| property damage liability coverage | protects the insured against claims if the insure's car damages someone else's property and they are at fault |
| colision coverage | protects a car owner against financial loss associated with damage resulting from a collision with another car or object or from the car turning over |
| comprehensive coverage | protects the insured from almost all damage and losses except those caused from a collision or from the car turning over |
| compulsory insurance laws | this requires you to carry certain types of auto insurance before your car can be licensed |
| financial responsiblility laws | provide that if you cause an accident and cannot pay either through insurance or savings or the sale of property your drivers license will be suspended or taken. |
| assigned risk plan | every auto insurance co. in the state that sells liability insurance is assinged a certain number of high risk drivers |
| no fault insurance laws | people injured in an auto accident are required to collect for their financial losses from their own insurance co. no matter who at fault |
