VOCABULARY

Claim

Request for insurance payment after a loss.

Co-insurance

Percentage you pay after the deductible is met.

Collision Coverage

Pays for car repairs after an accident.

Comprehensive Coverage

Pays for non-collision damage (like hail or theft).

Copay

Fixed amount you pay per medical visit.

Coverage Limit

Maximum amount insurance pays.

Deductible

Amount you pay before insurance pays.

Disability Insurance

Provides income if you can’t work due to illness/injury.

HMO

Health plan requiring a primary care doctor.

Homeowners Insurance

Covers your house and belongings.

Liability Coverage

Pays for damage you cause to others.

Life Insurance

Pays beneficiaries if you die.

Medicaid

Government health insurance for low-income people.

Out-of-Pocket Maximum

Maximum you pay in a year before full coverage.

PPO

Flexible health plan, no primary doctor needed.

Premium

Monthly cost of insurance.

Renters Insurance

Covers belongings in a rental unit.

Risk Pooling

Sharing risk across many policyholders.

Underwriter

Evaluates insurance risk.

Uninsured/Underinsured Coverage

Covers you if the other driver has little or no insurance.