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credit and insurance
ch. 18
Term | Definition |
---|---|
installment credit | credit used when a customer makes a sizable purchase and agrees to make payments over an extended but fixed period of time |
revolving credit | credit plan that combines the features of regular charge credit and installment credit |
debit card | allows a person to make a cash withdrawl from ATMs, pay bills by phone from bank accounts, and pay for on-site purchases such as food and household items |
smart card | credit and debit card wit a memory that stores financial, health, credit and other kinds of data that can be read by computers |
character | indication of ones moral obligation to pay debts |
Capacity | earning power |
capital | measure of the credit applicants current financial worth or ability to pay based on assets |
Conditions | economic and other matters, such as the economic health of community or nation and the extent of business competition that affect credit decisions |
No-fault insurance | each insurance company is required to pay the losses of its insured when an accident occurs, regardless of who might have been responsible for the loss |
health insurance | provides protection against the expenses of health care |
disability insurance | offers payments to employees who are no longer able to work because of accidents or illnesses |
life insurance | pays money on the death of the insured to a person or people identified in the insurance policy |
liability insurance | protection for risks involved in operating a business |
malpractice insurance | a type of liability insurance that protects against financial loss arising from suits for negligence in providing professional services |
bonding | provides payment of damages to people who have losses resulting from the negligence or dishonesty of an employee or from the failure of the business to complete a contract |