| A | B |
|---|
| actual cash value | the section of the property policy that provides coverage for the current price or book value of the thing that is lost or damaged |
| collision | auto insurance coverage that pays you to fix your car if you are at fault of an accident or the other guy doesn’t have insurance |
| comparative fault | your damages may be reduced by the percentage that you are at fault in a loss |
| comprehensive | auto insurance coverage that pays you if your car is stolen or for any acts of nature |
| deductible | a clause in your insurance policy that states that you will pay for a specific amount of a claim before that company pays |
| discounts | good driver, good student, member and multiple policies are things that can bring down the cost of insurance |
| financial responsibility | being able for the damage that you are legally liable for |
| grace period | auto, home, and apartments insurance policies do not have this, but life and health insurance policies are required to have this |
| insurable interest | you must be able to suffer a financial loss; basically you have to own something to get insurance on it |
| insurance | the transfer of risk to an insurance company and the sharing of the costs of a loss or accident |
| liability | the section of the property policy that pays for damages that you may have unintentionally caused; it also pays for personal damage or injuries to others |
| proof of loss | when you have a claim you must be able to prove that you owned the item stolen or damaged |
| replacement cost | the section of the property policy that provides coverage for the amount it would cost to go out and replace your lost or damaged item |
| risk | the chance that you will suffer a financial loss |
| sixty-thousand | if you didn’t want to carry an “insurance policy,” what is the amount of financial responsibility you would need to have |
| uninsured motorist | your auto insurance pays you for your injuries if the other person does not have insurance |
