| A | B |
|---|
| Insurance | The planned protection provided by sharing economic losses. |
| Insurance Company | Businesses that provide protection against economic loss. |
| Insurance Interest | A financial interest in property or a person's life that permits someone to buy insurance to protect against the financial loss of that property or person's life. |
| Policy | A contract issued by the insurance compnay for coverage of the policyholder. |
| Insured (Policyholder) | The person for who the risk is assumed. |
| Insurer | The insurance compnay that provides planned protection against economic losses. |
| Premium | The amount of money the policyholder must pay for insurance coverage. |
| Deductible | The amount of money the policyholder must pay before the unsurance compnay will pay a claim. |
| Claims | Request for payment from the insurance compnay to cover the financial losses. |
| Actual Cash Value | The value of a new car minus depreciation. |
| Depreciation | The decline in value of a vehicle because of use. |
| Financial Responsibility Law | The law says you must pay for any damage or injury you cause in an accident either with insurance, with savings, or by selling property. |
| Compulsory Insurance Law | Legally requires drives to have a minumum amount of car insurance. |
