Auto and Homeowners Insurance Concepts

These flashcards cover key concepts related to auto and homeowners insurance, including definitions, coverage types, exclusions, and liability limits.

Actual Cash Value

Replacement costs minus depreciation.

Replacement Costs

Costs for replacing items without accounting for depreciation.

Liability Insurance

Covers bodily injury and property damage a person is legally responsible for.

Medical Payments Coverage (Coverage B)

Covers medical expenses for occupants in the insured vehicle regardless of fault.

Limits of Liability

Specifies the maximum amount an insurer will pay for a claim.

Underinsured Motorist Coverage (Coverage C)

Covers costs for bodily injury and property damage from a negligent third party without sufficient insurance.

Collision Coverage

Covers damage to your vehicle due to a collision, typically with a deductible.

Comprehensive Coverage (Other Than Collision)

Covers damage to your vehicle not involving a collision, also referred to as OTC.

Deductible

The amount you pay out of pocket before insurance coverage kicks in.

No Fault Insurance

A system where each party involved in an accident collects from their own insurance regardless of who is at fault.

Negligence

Failure to exercise the standard of care required by law, resulting in harm to another party.

Intentional Torts

Legal wrongs committed deliberately, such as defamation.

Exclusions

Specific conditions or circumstances that are not covered by an insurance policy.

Health and Bodily Injury Exclusion

Excludes coverage for injuries to the driver in an auto insurance policy.

Personal Liability Coverage (Coverage E)

Covers legal liability for bodily injury and property damage caused to others, including defense costs.

Medical Payments to Others (Coverage F)

Covers medical costs for injuries to others, regardless of fault.

Underinsured Motorist (UIM)

Insurance coverage that kicks in when the at-fault driver has insufficient coverage.

Uninsured Motorist (UM)

Insurance that protects against the risk of an accident with a driver who has no insurance.