Studied by 10 peoplePolicy
contract between an insurance company and insured individual
out-of-pocket limit
limits the amount of money the policyholder must pay for the co-insurance
medical payments coverage
pays the costs of minor accidental injuries to visitors on your property
Coverage
the amount of liability protection offered to an individual through an insurance policy
Premium
the amount of money paid for an insurance policy
Deductible
the amount of money you will pay out of pocket before the insurance company will make a payment
Claim
a formal request by a policyholder to their insurance company for compensation for a covered loss
Copays
the payments an individual makes each time they get medical service
Out-of-Pocket Maximum
the most a policyholder has to spend for covered services in a year
Grace Period
the amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage
Liability Insurance
protection against claims resulting from personal injury or property damage as the result of an auto accident
Collision Insurance
protection for damage to your car resulting from a collision with another car or object
Comprehensive Insurance:
protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)
Uninsured/Underinsured Motorist Protection:
protection for you and passengers if you're hit by an uninsured or underinsured motorist, or if you are the victim of a hit-and-run
Personal Injury Protection (PIP)
a component of auto insurance that pays for medical expenses, lost wages, and other financial losses of the driver and passengers of the policyholder's vehicle
Homeowners Insurance
protection for losses to a private residence and the possessions within it, as well as liability coverage against accidents in the home or on the property
Renters Insurance
protection for destroyed or stolen personal property for a renter. provides liability protection and living expenses if you can't live in your rented home because of a covered incident.
Dwelling coverage
Covers structure of your home, including the roof, walls, floors, and any other part of the structure.
liability
protects you from legal liability of property damage or bodily injury.
Personal property coverage
policy covers your personal belongings if they are damaged, destroyed, or stolen.
Loss of use coverage
This covers additional living expenses—like the cost of a hotel—if you're unable to live in your home while it's being repaired.
Health Insurance
coverage for an individual's (or family's) medical expenses from illness or injury
Affordable Care Act (ACA):
also known as Obamacare; the health care reform law enacted in 2010, intended to make affordable health insurance more available
High-Deductible Health Plan (HDHP):
a health plan with a high minimum deductible for medical expenses
Health Savings Account (HSA)
a tax-exempt savings account dedicated to health care costs; only available for individuals on a high-deductible health plan
Lifetime Limit
the maximum amount of lifetime benefits a person can receive from their insurance company
Public health insurance
Federal and state government health programs (e.g., Medicare, Medicaid available to eligible individuals.
HMO
health maintenance insurance
PPO
preferred provider organization
accident report form
a form used to document an accident if one should occur while working
claims adjuster
person designated by the insurance company to assess whether the loss is covered and to determine the dollar amount that the company will pay
Vehicle Identification Number (VIN)
A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.
beneficiary
a person who receives something good from someone else such as an inheritance
Death Benefit
the amount paid upon the death of the insured in a life insurance policy
whole life insurance
Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.
Note
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