Insurance Terms: Lessons 1 & 2

an arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

• Insurance

• Policy

• Coverage

the contract between an insurance company and the insured individual

• Insurance

• Policy

• Coverage

the amount of liability protection offered to an individual through an insurance policy​​​​​​​

• Policy

• Coverage

• Premium

the amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage​​​​​​​

• Grace Period

• Deductible

• Copays

the amount of money you will pay out of pocket before the insurance company will make a payment​​​​​​​

• Deductible

• Claim

• Copays

a formal request by a policyholder to their insurance company for compensation for a covered loss​​​​​​​

• Claim

• Deductible

• Out-of-Pocket Maximum

the payments an individual makes each time they get medical service​​​​​​​

• Deductible

• Copays

• Out-of-Pocket Maximum

the most a policyholder has to spend for covered services in a year

• Out-of-Pocket Maximum

• Copays

• Deductible

the amount of money paid for an insurance policy​​​​​​​ (payments)

• Premium

• Coverage

• Policy

protection against claims resulting from personal injury or property damage as the result of an auto accident

• Liability Insurance

• Collision Insurance

• Uninsured Motorist Protection