Flashcards › Home and Motor Vehicle Insurance

insurance protection against possible financial loss policy a contract between an insurance company and a person by which that person joins a risk-sharing group premium the fee a policyholder pays for insurance Risk the chance of loss or injury peril anything that may possibly cause a loss hazard anything that increases the likelihood of loss through peril negligence the failure to take ordinary or reasonable care to prevent accidents from happening deductible the set amount that a policyholder must pay per loss on an insurance policy liability legal responsibility for the financial cost of another person's losses or injuries homeowners insurance coverage that provides protection for your residence and its associated financial risks personal property floater additional property insurance that covers the damage or loss of a specific item of high value medical payments coverage insurance that pays the costs of minor accidental injuries to visitors on your property actual cash value the replacement cost of an item minus depreciation replacement value the full cost of repairing or replacing an item bodily injury liability insurance that covers physical injuries caused by a vehicle accident for which the insured is responsible uninsured motorist's protection insurance that covers you and your family members if you are involved in an accident with an uninsured or hit-and-run driver property damage liability motor vehicle insurance that applies when you damage the property of others collision insurance that covers damage to your vehicle when it is involved in an accident no-fault system an arrangement whereby drivers who are involved in accidents collect money from their own insurance companies assigned risk pool a group of people who cannot get motor vehicle insurance