| A | B |
|---|
| Personal liability insurance | protects you from claims arising from injuries to other people or damage to other people's property caused by you, your family, or even your pets |
| Perils | the cause of losses, such as fire, wind, or theft |
| Real property | property not attached to the land, such as furniture or clothing |
| Standard fire policy | insures against losses caused by fire or lighting |
| Extended coverage | broadens the coverage to include damage caused by perils such as wind, hail, smoke, and falling aircrafts |
| Homeowners insurance | a very convenient package-type insuance policy designed to fit the needs of most homeowners wishing to insure their homes and property |
| Inventory | list of personal property that you have insured |
| Depreciation | affects the amount the insurance company will pay if the property is destroyed |
| Replacement | actually replaces an item that has been destroyed |
| Adjuster | a representive of the insurance company that can look at the damage property, determine the extent of loss, and pay you according to the terms of the policy |
| Life insurance | protects survivors against the financial loss associated with death |
| Term life insurance | provides financial protection from losses resulting from loss of life during a definite period of time, or term |
| Beneficiary | the person named in the policy to receive the insurance benefits |
| Renewable poliy | allows the policyholder to continue term insurance for one or more terms without taking a physical examination to determine whether she or he is still a good risk |
| Level term insurnace | the amount of protection and the premiums remain the same while the insurance is in effect |
| Decreasing term insurance | the amount of protection gradually becomes smaller, but premiums remain the same during the term |
| Permanent insurance | has cash value and an investment feature as its common characteristics |
| Cash value | refers to the amount of money recieved should a policyholder decide to surrender the policy |
| Face value | the amount of insurance coverage that was originally purchased and that will be upon the death of the insured |
| Whole life insurance | permanent insurance that extends over the lifetime, or whole life, of the insured |
| Ordinary life policy | a type of whole life insurance |
| limited-payment policies | whole life insurance policies are intended to be paid in full in a certain number of years |
| Variable life insurance | a type of life insurance plan that resembles an investment portfolio |
| Universal life insurance | provides both insurance protection and substantial savings plan |
| insurable interest | when you may insure not only your own life, but also the life of any other person whom you have an insurable interest |
| Group life insurnace | an insurance policy that covers a group of people |
