Insurance Vocabulary (Health, Auto, Property) – AP Macro/PFL

Vocabulary flashcards covering key health, auto, and property insurance terms from the notes.

Health Insurance

A policy that will pay specific sums for medical expenses or treatments.

Property Insurance

Policies that provide financial protection for property owners and renters against damage, theft, and liability claims.

An elective combination of coverages for risks of owning a home; can include losses due to fire, burglary, vandalism, earthquake, and other perils; often required on bank-owned homes with a mortgage.

Homeowner’s coverage

Protects personal property in a rented dwelling from theft, fire, sewer backup damage, and may provide liability protection.

Renter’s insurance

Auto Insurance

Coverage for risks of driving or owning a car, including collision, liability, comprehensive, medical, and uninsured motorist coverages.

Life Insurance

A policy that will pay a specified sum to beneficiaries upon the death of the insured.

Disability Insurance

Health insurance that provides income payments to the wage earner when income is interrupted due to illness or accident.

The amount of money the insurer charges the policyholder for coverage.

Premium

Deductible

The amount the insured must pay out of pocket before benefits begin; choosing a higher deductible can lower the premium.

A fixed amount paid by the insured toward the cost of medical treatment or services.

Co-pay

Beneficiary

The person or entity designated to receive the policy's death benefit when the insured dies.

Someone (such as a spouse or child) who can be added to a health plan and receive the same benefits.

Dependant

Policy

The written contract of insurance.

Coverage for the insured's legal obligations to pay damages for injuries or property damage caused to others.

Liability

Insurability

The ability to obtain insurance coverage.

Claim

Notice to the insurer that a loss may be covered under the policy.

PPO

Preferred Provider Organization; a health plan using a network of providers; care outside the network is possible at higher costs.

HMO

Health Maintenance Organization; typically limits coverage to doctors within the HMO network, with emergency exceptions for out-of-network care.

COBRA

A federal law allowing temporary continuation of health coverage after job loss or other qualifying events; the insured pays 100% of premiums plus a small admin fee.

HSA

Health Savings Account; a pre-tax savings account to pay for qualified medical expenses; funds generally cannot be used for premiums.

Medicare

A federal health insurance program for people 65+ and certain younger people with disabilities.

Medicaid

An insurance program providing free or low-cost coverage to some low-income individuals and families.

Comprehensive Coverage

Auto insurance coverage for direct or accidental loss of or damage to your covered automobile and its equipment, including fire, theft, or vandalism.

Minimum (Liability) Coverage

Auto coverage for the policyholder's legal liability resulting from injuries to others or damage to their property.

A decrease in the value of property due to age, wear and tear.

Depreciation

Rider/Endorsement

An amendment to an existing insurance policy used to add or delete coverage.