Property and Liability Insurance Study Guide

Flashcards covering key vocabulary related to property, health, life, and automobile insurance concepts.

Attractive Nuisance

A condition that may attract children onto private property, creating potential liability for property owners.

Co-Insurance Clause

A provision in an insurance policy that requires the policyholder to insure a property for a specified percentage of its value.

Umbrella Insurance

A type of liability insurance that provides additional coverage beyond the limits of the insured's other existing policies.

Risk Avoidance

A risk management strategy that aims to eliminate any exposure to a risk.

Risk Reduction

A risk management strategy that aims to reduce the impact or likelihood of a risk.

Risk Assumption

A risk management strategy that involves accepting the possibility of a loss and preparing for it.

Risk Transfer

A risk management strategy that involves shifting the risk to another party, typically through insurance.

Liability

Legal responsibility for one's actions or omissions that may result in harm to another party.

Deductible

The amount a policyholder must pay out-of-pocket before an insurance company pays for a covered loss.

Premium

The amount paid for an insurance policy, usually on a regular basis, in exchange for coverage.