| A | B |
|---|
| insurance | Protection against possible financial loss |
| insurance company | Risk-sharing business that agrees to pay for losses that may happen to someone it insures |
| insurer | Risk-sharing business that agrees to pay for losses that may happen to someone it insures |
| policy | Insurance contract that is purchased |
| policyholder | Purchaser of an insurance policy |
| premium | Fee paid by a policyholder to an insurer |
| coverage | Protection provided by the terms of an insurance policy |
| insured | Person or persons protected by an insurance policy |
| risk | The chance of loss or injury |
| peril | Anything that may possibly cause a loss |
| hazard | Anything that increases the likelihood of loss through some peril |
| negligence | Failure to take ordinary or reasonable care to prevent accidents from happening |
| deductible | Set amount that the policyholder must pay per loss on an insurance policy |
| claim | Request for payment from an insurance company to cover a financial loss |
| liability | Legal responsibility for the financial cost of another person's losses or injuries |
| homeowners insurance | Provides protection for a person's residence and its associated financial risks |
| household inventory | List or other documentation of personal belongings, with purchase dates and cost information |
| personal property floater | Covers the damage or loss of a specific item of high value |
| umbrella policy | Supplements the basic personal liability coverage in a homeowners insurance policy |
| medical payments coverage | Applies to the medical expenses of anyone who is injured while in the insured's auto, including the insured |
| endorsement | Addition of coverage to a homeowners insurance policy |
| actual cash value | Claim payment is based on the replacement cost of an item minus depreciation |
| replacement value | Claim payment is based on the cost of repairing or replacing an item |
| financial responsibility law | Requires drivers to prove that they can pay for damage or injury caused by an auto accident |
| bodily injury liability | Covers injuries caused by an auto accident for which the insured was responsible |
| medical payments coverage | Pays the costs of minor accidental injuries to visitors on a homeowner's property |
| uninsured motorist's protection | Covers the insured if involved in an accident with an uninsured or hit-and-run driver |
| property damage liability | Auto insurance that applies when the insured damages the property of others |
| collision | Covers damage to the insured's car when it is involved in an accident |
| no-fault system | Says that drivers who are in accidents collect money from their own insurance companies |
| assigned risk pool | All the people who cannot get auto insurance |
