| A | B |
|---|
| avoid risk | don't put yourself in the risky situation |
| reduce risk | participate in the risk, but minimize it, be careful |
| retain risk | accept the risk; maybe you'll be lucky |
| transfer risk | get someone else to take your risk |
| share risk | pool your risk |
| managing risk | controling your risk by sharing it with others in your pool |
| claim | request your insurance company pay for your loss |
| endorsements | attachment to a standard ins. policy that modifies policy; a rider |
| premium | payments to your insurance company for coverage |
| policy | written insurance agreement |
| exclusions | what isn't covered |
| liability | responsibility |
| indemnity | insurance protection against damage or loss |
| deductable | that sum of money you must first pay for a loss before insurance kicks in |
| co-insurance | two insurance policies covering similar things |
| COBRA | extended medical insurance benefits to cover a gap btw policies if you leave your employer |
| major medical | covers operations and catastrophic or extremely costly events |
| disability insurance | covers you when you are physically unable to work |
| managed care insurance | gives you pre-selected doctors and hospitals for specified fees |
| HMO | health maintenance organization, least costly but most restricted |
| PPO | preferred provider organization--discounted but wider range of physicians available than HMO |
| fee for service health insurance | you pay up front and get re-imbursed an amount |
