Comprehensive Insurance and Risk Management: Life, Health, Auto, Property

Practice flashcards covering essential vocabulary for Life, Health, Auto, and Property insurance and risk management based on lecture notes.

Actuarial Table

A statistical table that shows the probability of death or survival for individuals of different ages.

Actuary

A professional who uses mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty.

Deductible

The amount of money that the insured person is responsible for paying out-of-pocket toward a covered loss before the insurance company pays a claim.

Insurance Agent

A person who sells, solicits, or negotiates insurance coverage on behalf of a specific insurance company.

Insurance Broker

A licensed professional who acts as an intermediary, representing the client to find the best coverage from multiple insurance companies.

Liability Insurance

A type of policy that protects the insured against financial loss due to a lawsuit or claim for bodily injury or property damage to others.

Premium

The amount of money an individual or business pays to an insurance company in exchange for coverage.

Collision Coverage

Optional coverage that pays to repair or replace your vehicle if it is damaged in a collision with another vehicle or object.

Comprehensive Coverage

Optional coverage that pays for damage to your vehicle caused by incidents outside of your control.

Exclusion

A specific provision in an insurance policy that denies coverage for certain risks, perils, or property.

Gap Insurance

Optional coverage that pays the difference between what you owe on your vehicle loan or lease and its actual cash value if the car is totaled.

Medical Insurance (MedPay)

A type of coverage that helps pay for necessary medical or funeral expenses for you and your passengers following an accident.

No-Fault Insurance

A type of insurance system where your own auto insurance pays for your medical bills and lost wages after an accident, regardless of who caused it.

Peril

A specific cause of loss or damage, such as fire, theft, windstorm, or vandalism.

Personal Injury Protection (PIP)

Coverage broader than medical insurance, PIP covers medical expenses, lost wages, and essential services for you and your passengers.

Roadside Assistance

Optional coverage that provides services for emergencies such as towing, flat tire changes, jump-starts, or lockout services.

Uninsured/Underinsured Coverage (UM/UIM)

Coverage that protects you if you are in an accident caused by another driver who has no insurance or insufficient insurance coverage.

Auto Insurance

Covers vehicle damage, collision repairs, and liability for injuries to others.

Homeowners/Renters Insurance

Protects against property damage from fire, wind, hail, or theft, and covers liability for accidents on your property.

Health Insurance

Covers medical expenses, hospitalization, laboratory services, and prescription drugs.

Life Insurance

Provides a financial payout to beneficiaries upon the policyholder's death.

Disability Insurance

Replaces a portion of income if you cannot work due to illness or injury.

COBRA

Consolidated Omnibus Budget Reconciliation Act of $1985$, a federal law that allows workers and their families who lose their health benefits to continue their group health benefits for a limited time.

Group Insurance Plan

A health insurance plan offered by an employer, union, or association to its members.

HIPAA

Health Insurance Portability and Accountability Act, a federal law designed to provide privacy standards to protect patients' medical records.

HMO

Health Maintenance Organization, a type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO.

Long-Term Care Insurance

Insurance designed to cover long-term services and supports, including personal and custodial care.

Medical Underwriting

The process by which an insurer uses an applicant's medical history, age, and health status to determine coverage and premium rates.

Patient Protection and Affordable Care Act

Often referred to as the ACA or 'Obamacare,' a $2010$ federal law that enacted comprehensive health insurance reforms.

PPO

Preferred Provider Organization, a type of health plan that contracts with medical providers to provide lower-cost care.

Preexisting Condition

A health condition that a person has before enrolling in a new health insurance plan.

Prepaid Insurance Plan

A health plan where the provider is paid a fixed amount in advance for a set of services for a designated period.

Medical-expense insurance

Insurance that covers emergency care, routine and preventive care, and prescription drugs.

No Penalty Tax (Federal)

As of $2026$, there is no federal tax penalty for not having health insurance.

Out-of-pocket maximum

The maximum amount a patient pays before the insurance company covers all remaining bills.

Coverage limits

The maximum amount an insurance plan will pay for covered services.

Fee-for-service plan

A traditional indemnity plan where you pay the doctor directly and get reimbursed by the insurance company.

Health savings account

An account to invest money on a pretax basis for future health services, requiring enrollment in a high-deductible plan.

Medicare

A federal program primarily for persons age $65$ or older, providing coverage for hospital stays and some prescriptions.

High-deductible insurance plan

An insurance plan with a deductible of at least $1,250$ (as of $2014$) that qualifies for a health savings account.

Preventive care

Healthcare services that prevent illness or detect health issues early.

Routine care

Regular health check-ups and treatments that are not emergency-based.

Emergency care

Immediate treatment for acute medical conditions requiring urgent attention.

Prescription drugs

Medications that require a doctor's authorization to be dispensed.

Assisted living

A type of housing for people who need help with daily activities but do not require $24$-hour medical care.

Hospice care

Supportive care for individuals in the final phase of a terminal illness.

Nursing homes

Facilities that provide residential care for elderly or disabled individuals requiring assistance.

Alzheimer's facilities

Specialized care centers for individuals with Alzheimer's disease or other forms of dementia.

Companion care

Non-medical support services that assist individuals with daily living activities.

Private-duty nurse

A nurse who provides personalized care to patients in their homes.

Medicaid

A federal program for individuals and families with low incomes and resources.

Short-Term Disability (STD)

Covers temporary disabilities (e.g., recovery from surgery, maternity leave) for $3-6$ months, sometimes up to a year.

Long-Term Disability (LTD)

Covers severe, long-lasting, or permanent conditions, lasting for several years or until retirement.

Social Security Disability Insurance (SSDI)

A government program for long-term, total disability that prevents any work.

Elimination Period

The waiting period between the injury and when benefits begin (e.g., $90$ days).

Benefit Period

The length of time you receive payments.

Annuity

A contract with an insurance company designed for retirement planning, where an individual pays a lump sum or series of premiums in exchange for regular, guaranteed income payments.

Beneficiary

The person, entity, or organization designated in a policy to receive the death benefit proceeds upon the death of the insured.

Cash Value Fund

The savings component of a permanent life insurance policy that accumulates tax-deferred over time.

Group Life

A life insurance policy that covers a group of people under a single master contract.

Insured

The person whose life is covered by the life insurance policy.

Mortality Table

A statistical table used by actuaries to show the rate of death at different ages.

Policyholder (Policy Owner)

The individual who owns the insurance policy, pays the premiums, and has the authority to make changes.

Rating

The method used by underwriters to classify risks based on factors like health and lifestyle.

Rider

An optional amendment or addition to an insurance policy that customizes coverage.

Term Life

Life insurance that provides coverage for a specific period and pays a death benefit only if the insured dies during that term.

Underwriting

The process by which an insurance company evaluates the risk of insuring a potential policyholder.

Universal Life

A type of permanent life insurance that offers flexible premium payments and adjustable death benefits.