Insurance

Risk

The loss that you face

Pooled Risk

The sharing of risk; all insurance based on this

Premium

The periodic payment for begin covered by insurance

Policy

The contract that spells out what is being covered

Renewal

When you keep your insurance coverage

Broker

Someone who sells insurance from many different companies

Agent

Someone who sells insurance for a particular company

Actuary

A person who calculates the mathematical probabilities of a particular risk happening

Deductible

The amount the policyholder must pay before insurance starts to pay

Commission

The amount of the premium the broker or agent keeps

Reinsurance

An insurance policy that insures insurance companies

Liability

Covers you if you cause a loss for someone else

Comprehensive

Covers damage to your car from something other than a car accident

Collision

Covers damage to your car from an accident

Uninsured Motorist

Covers your losses if you are in an accident caused by someone without insurance

Adjustor

The person who looks over an accident and decides how much you should get

Binder

A policy that covers you for a short term when, for example, you buy a new car

Umbrella Policy

Covers you for all liability claims for any reason once your other insurance maxes out

SR-22

The state law that requires all drivers have a minimum amount of liability insurance

Claim

When you file for money from your insurance due to a loss

Renters Insurance

Covers your stuff when you are a renter; theft, fire, etc.

Actual cash value

Covers loss for the actual value of the property damaged or stolen at the time

Replacement Value

Covers loss for the cost it takes to replace the stuff lost or stolen or damaged

Mortgage Insurance

Pays off your mortgage if you die

Guaranteed Issue

Means health insurers must insure you regardless of your health

Individual Mandate

Means everyone must have insurance

Moral Hazard

People change their behavior once they are insured

Adverse selection

Only sick people want insurance; insurers only want healthy people

Open Enrollment Period

The time when you can sign up for health insurance

Cafeteria Plan

When you get to choose your insurance coverage from a variety of plans

Co-Pay

The amount you must pay everytime you see the doctor or buy a prescription

HMO- Health Maintenance Organization

A closed system where all your care is within one program

HSA - Health Savings Account

A way to save for health care costs tax-free

Catastrophic Policy

Only covers for very expensive risk

Out of Pocket Limit

The overall limit of what you will have to pay for

Recission

When an insurance company retroactively cancels your policy if they find a problem on your application

Fee For Service

The system where providers are paid for each task they do

Pre-existing condition

Any illness or problem you have had before applying for insurance

Worker's Compensation

Insurance if you are injured at work

Disability Insurance

Insurance for when you are injured and unable to work

FICA - Social Security Insurance

6.2% + 6.2% goes to fund to pay money when you are older

Term Life Insurance

Covers you in case you die within a certain period of time

Whole Life Insurance

Has death benefit when you die; combines savings and insurance

Beneficiary

Who gets the money when you die

Surrender Value

The value of a whole life insurance policy if you choose not to renew

Annuity

A way to take a large amount of money and receive an annual salary

Accelerated Death Benefits

A way to get some of your whole life policy while still alive

Surrender Charge

A charge for not renewing a whole life policy

Variable Universal Life Insurance

A combination of whole life and term life; very confusing

Convertible insurance

A combination of whole life and term life; very confusing