| A | B |
|---|
| risk | chance of loss from type of danger |
| risk management | how you deal with chance of potential personal or financial loss |
| avoid | staying away from or not doing a risky behavior |
| reduce | take steps to protect against risk |
| accept | willing to take chance on risk |
| share | use insurance to help with financial costs related to risks |
| insurance | means of guaranteeing your financial protection against various risks |
| insurance policy | written contract detailing what an insurance company will cover |
| premium | amount you pay for insurance policy |
| coverage limit | maximum amount insurance company will pay if you file claim |
| deductible | amount of loss you must pay out of your own pocket before insurance pays |
| general liability | covers damage you cause to other people's property & bodily injuries outside your car |
| medical payment | covers immediate compensation for bodily injuries to you and your passengers |
| collision | covers repairs for damage you cause to car |
| comprehensive | covers fire damage, break-ins, vandalism, theft and natural disasters |
| uninsured | coveres lost wages and medical expenses if your accident is with someone who does not have insurance |
| underinsured | covers cost of repairs from accident caused by another driver that exceed his or her coverage |
| conditions | define your and insurance company's rights, duties and responsibilities |
| health insurance | pays medical bills when you or family become sick or injured |
| property insurance | protects your possessions |
| life insurance | provides financial support for people who depend on you after you die |
| disability insurance | protects your earning power |
| liability insurance | protects you in case you are legally responsible for injury or property damage |
