CH 7 Reducing Risk and Understanding Insurance

Front

The value of your vehicle or other property at the time it was damaged resulting from an accident.

Back

Actual Cash Value

Front

Person designated as the recipient of funds or other property under a will, trust, insurance policy, or other financial arrangement.

Back

Beneficiary

Front

The amount an insurance company pays to you or your beneficiary when you file a claim.

Back

Benefit

Front

This covers medical expenses for injuries the policyholder causes to someone else.

Back

Bodily Injury Liability

Front

The policyholder's request for the reimbursement of an expense covered by an insurance policy

Back

Claim

Front

This covers physical damage to the policyholder's car from an accident.

Back

Collision

Front

For damage to the policyholder's car that doesn't involve a collision. Covers damage resulting from vandalism, fire, theft, falling objects, missiles, explosion, earthquake, flood, riot, etc.

Back

Comprehensive

Front

The portion of losses that you agree to in the event of an accident. Higher deductibles lower premiums significantly but will result insignificantly higher out-of-pocket expenses for you in the case of an accident, especially if you're at fault. This is the amount of money that you pay out of your own pocket if you get in an accident.

Back

Deductible

Front

These are changes to the original insurance contract, such as an additional car or driver.

Back

Endorsements

Front

Situations that are not covered by a given insurance policy,

Back

Exclusions