Personal Financial Literacy: Insurance Terms

A person who compiles and analyzes statistics to calculate risk and determine insurance rates and premiums​

​ (a)  

• actuary
• insurance agent
• investment banker
• IRS agent

Health insurance that provides protection against the high cost of treating severe or lengthy illness or disabilities and usually has a high deductible and lower premiums.

​ ​ (a)  

• Catastrophic Health Insurance
• Homeowner's Insurance
• Auto Insurance
• Renter's Insurance

Children's Health Insurance Program. A program that provides low-cost health coverage to children in families who earn too much money to qualify for Medicaid.

​ (a)  

• CHIP
• Medicaid
• Medicare
• Private Health Insurance
• Blue Cross Blue Shield

A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy.

​ (a)  

• claim
• request
• application
• demand
• petition

Auto insurance that protects you against costs to repair your own vehicle after a crash.

​ (a)  

• Collision Coverage
• Comprehensive Coverage

Auto insurance that protects you against costs to repair or replace your vehicle after events out of your control such as weather, vandalism, theft, etc.

​ ​ (a)  

• Comprehensive Coverage
• Collision Coverage
• Liability Coverage

 The portion of a car insurance policy that spells out the details for how to make a claim, what information you must have, how much time you have, and how to cancel your policy.

​ (a)  

• Conditions of the Policy
• Deductible
• Cost of Premium

A fixed dollar amount that you agree to pay each time you receive medical treatment, such as a doctor's visit or prescription.

​ (a)  

• Copay
• Deductible
• Monthly Premium
• Pharmacy Costs

The maximum amount an insurance company will pay if you file a claim.

​ (a)  

• Coverage Limit
• Claim
• Catastrophic Health Insurance
• Extended Warranty

The page of a car insurance policy which includes a summary description of the insurance coverage provided and gives the maximum dollar limit the insurer will pay for a claim under each coverage.

​ (a)  

• Declaration Page
• Coverage Limit
• Copay
• Claim