Finance | Chapter 15

0.0(0)
studied byStudied by 0 people
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/18

encourage image

There's no tags or description

Looks like no tags are added yet.

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

19 Terms

1
New cards

bodily injury liability

covers injuries caused by a motor vehicle accident for which the insured is responsible

2
New cards

medical payments coverage

applies to the medical expenses of anyone who is injured in the insurance vehicle including the insured

3
New cards

replacement value

the method by which an insurance company payment is based on the full cost of repairing or replacing an item

4
New cards

actual cash value

insurance payment based on what the item cost to replace minus depreciation

5
New cards

negligence

the failure to take ordinary or reasonable care to prevent accidents from happening

6
New cards

endorsement

in addition of coverage to homeowners policy

7
New cards

deductible

the set amount that a policyholder must pay per loss on an insurance policy

8
New cards

claim

a request for insurance payment to cover a financial loss

9
New cards

liability

the legal responsibility for the financial cost of another person's losses or injuries

10
New cards

personal property floater

covers the damage or loss of a specific valuable item

11
New cards

collision insurance

covers damage to the vehicle of the insured person no matter who is at fault

12
New cards

depreciation

refers to the loss in value as an item gets older

13
New cards

household inventory

documentation of personal belongings

14
New cards

policy

a contract between the insurance company and the insured

15
New cards

peril

In insurance anything that may possibly cause a loss is known as a

16
New cards

liability risk

Insurance risk involving losses caused by negligence

17
New cards

risk shifting

occurs when you buy insurance to cover financial losses caused by damaging events, such as fire, theft, injury, or death

18
New cards

risk assumption

the process of accepting the consequences of risk, like having a saving account to cover your deductible.

19
New cards

risk avoidance

avoiding an act that would create a risk, not driving in an ice storm.