Insurance Terms

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Policy

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contract between an insurance company and insured individual

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out-of-pocket limit

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limits the amount of money the policyholder must pay for the co-insurance

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35 Terms

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Policy

contract between an insurance company and insured individual

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out-of-pocket limit

limits the amount of money the policyholder must pay for the co-insurance

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medical payments coverage

pays the costs of minor accidental injuries to visitors on your property

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Coverage

the amount of liability protection offered to an individual through an insurance policy​​​​​​​

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Premium

the amount of money paid for an insurance policy​​​​​​​

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Deductible

the amount of money you will pay out of pocket before the insurance company will make a payment​​​​​​​

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Claim

a formal request by a policyholder to their insurance company for compensation for a covered loss​​​​​​​

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Copays

the payments an individual makes each time they get medical service​​​​​​​

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Out-of-Pocket Maximum

the most a policyholder has to spend for covered services in a year

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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​​​​​​​

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Liability Insurance

protection against claims resulting from personal injury or property damage as the result of an auto accident

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Collision Insurance

protection for damage to your car resulting from a collision with another car or object

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Comprehensive Insurance:

protection for loss or damage to your vehicle caused by something other than a collision (such as vandalism)​​​​​​​

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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

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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

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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

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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.

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Dwelling coverage

Covers structure of your home, including the roof, walls, floors, and any other part of the structure.

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liability

protects you from legal liability of property damage or bodily injury.

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Personal property coverage

policy covers your personal belongings if they are damaged, destroyed, or stolen.

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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.

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Health Insurance

coverage for an individual's (or family's) medical expenses from illness or injury

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Affordable Care Act (ACA):

also known as Obamacare; the health care reform law enacted in 2010, intended to make affordable health insurance more available​​​​​​​

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High-Deductible Health Plan (HDHP):

a health plan with a high minimum deductible for medical expenses​​​​​​​

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Health Savings Account (HSA)

a tax-exempt savings account dedicated to health care costs; only available for individuals on a high-deductible health plan

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Lifetime Limit

the maximum amount of lifetime benefits a person can receive from their insurance company

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Public health insurance

Federal and state government health programs (e.g., Medicare, Medicaid available to eligible individuals.

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HMO

health maintenance insurance

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PPO

preferred provider organization

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accident report form

a form used to document an accident if one should occur while working

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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

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Vehicle Identification Number (VIN)

A unique number that is assigned to each vehicle and that identifies certain vehicle characteristics.

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beneficiary

a person who receives something good from someone else such as an inheritance

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Death Benefit

the amount paid upon the death of the insured in a life insurance policy

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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.