| A | B |
|---|
| compensation (pay) for loss or damage: reimbursement | indemnify |
| party who will indemnify if loss occurs | insurer |
| portion of the loss that you agree to pay | deductible |
| price of insurance | premium |
| the potential loss that has been insured against | risk |
| person designated as the recipient of funds or other property under a will trust or insurance policy | beneficiary |
| potential to sustain loss due to the covered risk | insurable interest |
| situations that are not covered by insurance | exclusions |
| modifications to the standard fire policy made to satisfy individual needs | endorsements |
| does not require that someone be assigned the blame in order for the policy holder to collect his/her monies | no fault insurance |
| clause that requires the insured to maintain coverage equal to a certain percentage of the total current value of the insured property | coinsurance |
| individual that sells and services insurance policies | agent |
| grouping of insured with a similar level of risk | risk class |
| covers physical damage to the car from any collision | collision insurance |
| insurance that covers against all damage to the insured's car except that caused by collision or upset | comprehensive insurance |
| length of time after a premium is due and unpaid during which the policy remains in force (or good) | grace period |
| party protected or covered if the loss occurs | insured |
| amount of ech bill or service that the insured must pay | coinsurance |
| insurance that pays to a named beneficiary or the deceases estate upon the death of the insured | life insurance |
| written contract of insurance | policy |
| the cost of replacing damaged or destroyed property with new property without deducting for depreciation | replacement cost |
| the largest amount of money an insurer will pay in case of a covered loss | liability limits |
