Business Insurance Review

Front

A formal request made by the insurance policyholder to the insurance company for payment or services covered by the insurance policy.

Back

Claim

Front

The amount you must pay on a claim before the insurance company will pay.

Back

Deductible

Front

A financial product (called an insurance contract or policy) that you buy from an insurance company or organization.

Back

Insurance

Front

A contract of insurance

Back

Policy

Front

The person to whom an insurance policy is issued.

Back

Policyholder

Front

A payment made monthly, twice a year, or yearly, for an insurance policy.

Back

Premium

Front

Chance or possibility of injury, damage, or loss that someone may want an insurance policy to cover.

Back

Risk

Front

The types of events (losses) that an insurance company would pay for and the amount of money paid for the loss.

Back

Coverage

Front

In which of the following scenarios will you obligated to pay the least amount of money out-of-pocket for medical expenses? You have no insurance. You have health insurance with a $500 deductible. You have auto insurance with a $700 deductible. You have health insurance with a $1,500 deductible.

Back

You have health insurance with a $500 deductible.

Answer explanation

By definition, a deductible is the amount of money you pay out of pocket, before the insurance company starts to cover cost.

In this case, you would be looking for the lowest deductible. Also you want to make sure you are looking at medical insurance. This is what you use to pay for medical expenses.

Front

The insurer's determination that you meet the company's conditions to be insured.

Back

Insurability