| A | B |
|---|
| actuary | a specialist in insurance calculations and statistics |
| beneficiary | a person named on an insurance policy to receive the benefits from the policy |
| benefits | sums of money to be paid for specific types of losses under the terms of an insurance policy |
| cash value | the amount of money payable to a policyholder upon discontinuation of a life insurance policy |
| claim | a policyholder’s request for reimbursement for a loss under the terms of an insurance policy |
| coverage | protection provided by the terms of an insurance policy |
| deductible | the specified amount of a loss that the policyholder pays before the insurer is obligated to pay anything. The insurance company pays only the amount in excess of the deductible |
| exclusions | specified losses that the insurance policy does not cover |
| face amount | the amount stated in a life insurance policy to be paid upon death |
| grace period | the additional time after the premium due date that the insurer allows the policyholder to make the payment without penalty (30 days) |
| hazard | a condition that creates or increases the likelihood of some loss – (lightning or defective house wiring) |
| insurance agent | a professional insurance salesperson who acts for the insurer in negotiating, servicing, or writing an insurance policy |
| insured | the person or company protected against loss (not always the owner of the policy) |
| loss | an unexpected reduction in value of the insured’s property caused by a covered peril – the basis of a valid claim |
| peril | an event whose occurrence can cause a loss--fire, robbery, storms, explosions, accidents |
| proof of loss | written verification of the amount of a loss that must be provided by the insured to the insurer before a claim can be settled |
| standard policy | the contract form that has been adopted by many insurers, approved by state insurance divisions, or prescribed by law |
| homeowner's insurance | This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. |
| liability insurance | If you're found to be at fault in an accident, liability coverage will help you pay for damage to another person's property (this is called property damage liability) or for costs associated with their injuries (the coverage known as bodily injury liability) that you are responsible for |
| renter's insurance | Protects the tenant's personal property against named perils such as fire, theft and vandalism. |
| collision | this insurance coverage covers damage to your car in an accident if you are at fault |
| comprehensive | this insurance coverage covers damages to your car other than being hit or upse |
| adjustors | they people from the insurance company determine the value of what was destroyed or damaged by fire or other event causing loss |
| why do people buy insurance? | minimize their risk |
| how does insurance work? | a company agrees to pay the cost of potential future losses in exchange for regular fee payments |
| Ways to reduce your insurance costs | shop around, before you buy a car, compare insurance costs, consider higher deductibles, reduce coverage on older cars, buy your homeowners and auto insurance from the same company, maintain a good credit history, take advantage of low mileage discounts, ask about group insurance |
| factors that affect cost of car insurance | your coverage and deductibles, what you drive, how often, and how far, you drive, where you live, your driving record, your credit history, your age, sex, and marital status |
| health insurance | a plan for sharing the risk of financial loss resulting from an accident or illness |
| life insurance | provides protection from financial loss that might otherwise occur when a person dies |
