| A | B |
|---|
| Insurance | The planned protection provided by sharing economic losses. |
| Insurance Company | Businesses that provide planned protection against economic loss. |
| Insurable interest | A financial interest in property or a person's life that permits someone to buy insurance to protect against the financial loss of that property or person's life. |
| Policy | A contract issued by the insurance company for coverage of the policy holder. |
| Insured (policy holder) | The person for whom the risk is assumed. |
| Insurer | The insurance company that provides planned protection against economic losses. |
| Premium | The amount of money the policyholder must pay for insurance coverage. |
| Deductible | The amount of money the policyholder must pay before the insurance company will pay a claim |
| Claims | Requests for payment from the insurance company to cover the financial losses. |
| Actual Cash Value | The value of a new car minus depreciation. |
| Depreciation | The decline in value of a vehicle because of use. |
| Financial Responsibility Law | The law says you must pay for any damage or injury you cause in an accident either with insurance, with savings, or by selling property. |
| Bodily Injury Liability | Protects the insured person from injury to people in other cars, passengers riding with the insured person, and pedestrians, but does not cover the insured person. |
| Compulsory Insurance Law | Legally requires drivers to have a minimum amount of car insurance. |
| Medical Payments | Covers policyholders and family member while riding in a car. |
| Uninsured Motorist Protection | Protects policyholder against drivers without insurance |
| Property damage liability | Protects the insured person against damage by his/her car to another person's property. |
| Collision Insurance | Protects the car owner against damage from a collision with another object or the car turning over, but does not cover injuries to people. |
| Comprehensive Physical Damage | Protects the insured person against almost all damage except the collision or the car turning over. |
