Term | Definition |
Claim | paperwork submitted to the insurance company describing accident, injury, or loss. |
Coinsurance | Method by which an individual and a health insurance company share the total cost of the individual’s medical care after the deductible has been met. |
Collision coverage | covers damage from an accident with another vehicle, object, or rollover. |
Comprehensive coverage | covers all physical damage except those caused by collision. |
Copayment | a specific flat fee paid each time a person visits the doctor. |
Cost/benefit analysis, risk/reward relationship | tool used to choose among alternatives involves weighing the cost of a product or service against the benefit it will provide. |
Coverage | protection from a specified type of loss and the amount paid for the loss. |
Deductible | the amount a person must pay each year before medical insurance begins to pay for covered expenses. |
Disability Insurance | provides money when an individual is sick/injured and unable to work. |
Health insurance | provides money to pay for medical expenses when sick or injured. |
In-kind income | provision of a product or service rather than cash. |
Insurance | Risk management tool that limits financial loss due to illness, injury, or damage in exchange for a premium; usually provides protection against large-scale financial loss. |
Insurance premium | the payment a person makes to an insurance company in exchange for its promise of protection and help. |
Liability | injury or damage caused to other people or their property. |
Liability insurance | covers injury or damage caused to other people or their property. |
Life insurance | insurance that pays upon death; certain types accumulate cash and can be used as an investment vehicle. |
Long-term care insurance | Coverage that provides nursing-home care, home-health care, personal or adult day care for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision. |
Medical payment insurance | medical payment insurance pays for needed treatment in the case of injury sustained in an automobile accident. |
Moral hazard | act of insuring increased the likelihood it will occur. |
Policy | contract that specifies what risks are covered and what will be paid for a loss. |
Policy holder | one who owns the policy. |
Premium | fee paid to insurance company under specified terms. |
Property Insurance | covers damage to property. |
Risk investment, personal, insurance | the probability of making a profit or losing money on one’s investment; the chance an investment will decrease in value; possible losses involving income or standard of living. The possibility of a loss from perils to people or property covered by insuran |
Risk management | deliberately and systematically using various strategies for controlling against potential personal or financial loss from pure risks. |
Risk tolerance | the amount of uncertainty or possibility of loss the individual can bear. |
Shared risk | insurance principle: Using premiums from many policy-holders to reimburse the losses of a few, so that no one suffers a financially devastating loss. |
Umbrella insurance | insurance in excess of coverage of underlying policies (homeowners, auto). |
Uninsured/Underinsured | covers injury or damage caused by a driver without insurance or with inadequate insurance. |