Insurance Vocab

Assigned Risk

This occurs when no insurance is willing to insure a driver and the state must find one for him/her. This results in the driver paying the highest premiums for coverage

Insurable Intrest

The concept of personal financial harm if an item is lost due to theft, fire, ect. One must posses this in order to be permitted to insure something or someone

Co-Insurance

After the deductible is met, this is when you and your insurer share the rest of the finacial responsibility

No Fault

When a policy-holder’s insurance covers his/her injuries and medical expenses that resulted from an auto accident regardless of who was at fault

Homeowners Insurance

Type of Insurance that provides structure, personal property and liability protection for one’s home

Renters Insurance

Type if insurance that covers a tenant’s personal protect and liability

Limited tort

In PA, this means you have forfeited your right to sue for pain and suffering if you are injured in an auto accident that was not your fault

Policy

A legal contract between insurance company and consumer for coverage

Full Tort

In PA, this allows you the right to sue someone for pain and suffering if you are injured in an auto accident and it was their fault

Deductible

An amount a policyholder pays before the insurance company pays anything when a claim is filed

Rider

An optional add-on to an insurance policy that covers a specific type of loss ( for an unusual or expensive items)

Insurnace

A risk management tool that limits financial loss due to illness, injury, damage, in exchange for a premium ( transfers the risk)

Co payment

A flate rate that is paid out-of-pocket when medical care is sought

Shared risk

The concept of no single policyholder bearing the burden of a financially devistating loss

Premium

A regular payment made to the insurance company in exchange for their covargae

Umbrella policy

A policy that provides additional liability protection beyond existing limits/coverage under a traditional homeowners or automobile policy

Claim

A formal request for payment from an insurance comapny