Insurance
A plan to help people protect themselves from unexpected financial losses.
Insurer
A person or company that underwrites/guarantees an insurance risk; the party in an insurance contract agreeing to pay compensation.
Policy
An insurance contract.
Policyholder
A person or group in whose name an insurance policy is held. The owner of the policy.
Insured
A person or organization covered by insurance.
Peril
A serious and immediate danger.
Risk
A situation involving exposure to danger.
Premium
A set amount of money paid periodically for insurance coverage.
Deductible
The amount a policyholder must pay before the insurance company will pay a claim.
No-fault Auto Insurance
Insurance benefits paid to policyholders regardless of who caused the accident.
Financial Responsibility Laws
Laws requiring that all motorists have auto liability insurance coverage.
Health Insurance
Insurance used to help cover the cost of medical procedures.
Basic Medical Insurance
Health insurance coverage that pays for the cost of hospitalization, which usually includes room, board, nursing services, laboratory test, X-rays, and medicine.
Major Medical Insurance
Health insurance coverage that begins paying where basic coverage stops. It pays the largest share of expenses resulting from a major illness or serious injury.
Disability Insurance
Coverage that provides regular income payments when a person is unable to work because of injury or illness.
Coinsurance
An insurance provision that requires the insured to pay a percentage of the medical costs.
Health Maintenance Organization (HMO)
A health plan that provides a variety of health care services to members for a set, prepaid fee.
Primary Care Physician
The doctor chosen to provide a person's health care needs through a health maintenance organization.
Preferred Provider Organization (PPO)
An organization that has made arrangements with doctors and hospitals who have agreed to accept lower fees for their services in providing health care for group members.
Point-of-service (POS) Plan -
A health care plan that allows a consumer to obtain medical services at less cost through a network of various health care providers.
Beneficiary
The person named by a life insurance policyholder to receive the death benefit.
Whole Life Insurance
Insurance that covers the policyholder for a lifetime.
Cash Value
The amount a life insurance policy is worth in cash if the policy is surrendered.
Term Life Insurance
Insurance that covers the policyholder for a set period of time specified in the policy, such as 10 years.
Universal Life Insurance
A type of life insurance that combines death benefits with a savings and investment account that earns current market rates.
Property Insurance
A type of Insurance that covers the loss of or damage to buildings, equipment, machinery, merchandise, furniture, and fixtures.
Fidelity Bonds
Protect a business from employee dishonesty.
Performance Bonds (Surety Bonds)
Provide financial protection for losses that might occur when a construction project is not finished due to the contractor's impaired financial condition.
Credit Insurance
A type of Insurance that protects a business from losses on credit extended to customers.
Credit Life Insurance
A type of Insurance that pays off the balance due for loans granted by banks, credit unions, and other financial institutions in the event the borrower dies.
Workers' Compensation Insurance
A type of Insurance that covers employees who suffer job-related injuries and illness and protect employers from lawsuits filed by an employee injured on the job.