Insurance Terms

Policy

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.