| A | B |
|---|
| Insurance | protection against possible financial loss. |
| insurance company or insurer | risk-sharing business that agrees to pay for losses that may happen to someone it insures |
| policy | an insurance contract that is purchased |
| policyholder | the purchaser of an insurance policy |
| premium | a fee paid by a policyholder to an insure |
| coverage | protection provided by the terms of an insurance policy |
| insured | people protected by the policy |
| risk | the chance of loss or injury |
| peril | anything that may possibly cause a loss |
| hazard | anything that increases the likelihood of loss through some peril |
| negligence | the failure to take ordinary or reasonable care to prevent accidets from happening |
| deductible | the set amount that the policyholder must pay per loss on an insurance policy |
| claims | requests for payment to cover financial losses |
| liability | legal responsibility for the financial cost of another person's losses or imjuries |
| homeowners insurance | coverage that provides protection for your residence and its associated financial risks, such as damage to personal property and injuries |
| household inventory | a list or other documentation of perosnal belongings, with purchase dates and cost information |
| personal property floater | additional property insuarnce that covers the damage or loss of a specific item of high value |
| umbrella policy | aka personal catastrophe policy. supplements your basic personal liability coverage |
| medical payments coverage | pays costs of minor accidental injuries to visitors on your property |
| endorsement | an addition of coverage to a homeowners insurance policy. |
| actual cash value | payment you receive is based on the replacement cost of an item minus depreciation |
| replacement value | you receive the full cost of repairing or replacing an item |
| financial rsponsibility | a law that rquires drivers to prove that they can pay for damage or injury caused by an automobile accident |
| bodily injury liability | insurance that covers physical injuries caused by an automobile accident for which you were responsible |
| medical payments coverage | insurance that applies to the medical expenses of anyone who is injured in your automobile, including you |
| uninsured motorist's protection | insurance that covers you and your family members if you are involved in an accident with an uninsured or hit-and-run driver |
| property damage liability | automobile insurance that applies when you damage the property of others |
| collsion | insurance covers damage to your car when it is involved in an accident |
| no-fault system | drivers who are involved in acidents collect money from their own insurnce companies |
| assigned risk pool | includes all the people who can't get automobile insurance |
