| A | B |
|---|
| risk | the chance of injury, damage, or economic los |
| loss | a physical injury, damage to property, or disappearance of property or other assets |
| probability | the likelihood of a risk resulting in a loss |
| risk assessment | the process of identifying risks and deciding how serious they are |
| risk reduction | finding ways to lower your chance of incurring loss |
| risk avoidance | stopping behavior that leads to a risk |
| risk transfer | passing risk to another party |
| premium | the price you pay for insurance coverage |
| risk assumption | accepting the consequences of risk |
| self-insure | setting aside money to be used in the event of injury or loss of assets |
| health insurance | a plan for sharing the risk of medical costs resulting from injury or illness |
| fee-for-service plan | a type of health insurance plan that allows patients to choose any doctor or other provider for medical services |
| health maintenance organization (HMO) | a group plan that provides prepaid medical care of its members |
| preferred provider organization (PPO) | a network of independent health care providers that band together to provide health care services for a set fee |
| stop-loss provision | an insurance clause that sets a maximum that the insured has to pay out of pocket during any calendar year |
| disability insurance | insurance that provides income to replace a portion of normal earnings when the insured is unable to work due to a nonwork-related injury or illness |
| life insurance | insurance that pays money to a beneficiary upon the death of the insured person |
| beneficiary | theh person designated to receive money from a life insurance policy |
| temporary life insurance | a policy that remains in effect for a specific period of time |
| permanent life insurance | a policy that remains in effect for the insured's lifetime and builds cash value |
| homeowners insurance | a policy that protects property owners from risk of loss to their real and personal property |
| liability coverage | protection against injuries suffered by others while on your property as a result of your actions |
| home inventory | a list of items of value in your home; used for insurance purposes |
| replacement value | the cost of replacing an item regardless of its actual cash (market) value |
| renters insurance | a policy that protects renters from personal property and liability risks |
| auto insurance | a policy that protects a car owner from losses as a result of accidents and other events |
| collision coverage | a policy that protects against damage to your own vehicle if yo uhit another car or lose control and roll over |
| comprehensive coverage | protection against damages to your car from causes other than collision or rolling over |
| personal injury protection (PIP) | coverage for medical, hospital, and funeral costs of the insured and passengers in the event of an accident, regardless of who is at fault |
| uninsured/underinsured motorist coverage | protection against damages caused by a motorist with no or insufficient insurance |
| umbrella liability insurance | a supplement to your basic auto and homeowners coverage that expands limits and includes additional risks |
