Insurance Concepts and Types

Front

What is insurance?

Back

A tool that limits your risk of losing too much money due to illness, injury, or damage, but requires paying a premium.

Front

Define 'premium' in insurance terms.

Back

Regular payments made to be covered by insurance.

Front

What is an insurance policy?

Back

An insurance contract or plan you choose.

Front

What is a claim in insurance?

Back

A paperwork request made to an insurance company for them to pay for a loss.

Front

What does 'appraisal' mean in insurance?

Back

The value of a piece of property according to an expert.

Front

What is a rider (or endorsement) in insurance?

Back

An addition to an insurance policy that covers a specific loss not covered in the standard policy.

Front

What is property insurance?

Back

Insurance that protects you from financial loss when something you own is stolen, damaged, or destroyed.

Front

Define liability insurance.

Back

Insurance that protects you from losses that you cause to others.

Front

What is personal insurance?

Back

Insurance that protects you, your spouse, and your children against financial loss due to illness, disability, or death.

Front

Why is auto insurance important?

Back

Cars are expensive to buy and fix, you might cause damage to others and their property, and state law requires liability insurance.