Insurance Chp.20

assume risk

An owner of a company believes he will continue to sell products at a profit

avoid risk

A company decides to wait on the acquisition of another company until that company quarterly earnings reports comes out

transfer risk

Home Depot decides to contract with an outside transportation company for deliveries

insure risk

WSFCS benefits department negotiated a contract with another company that will provide liability coverage for their employees

comprehensive medical policy

a health policy combining hospital, surgical, regular, and major medical insurance

homeowner's policy

a package-type insurance policy designed to insure homes and property

collision

auto coverage for a loss resulting from a collision with another car or object

comprehensive coverage

auto coverage for almost all damage losses except those caused from a collision

bodily injury liability

coverage for claims resulting from injuries or deaths for which the insured is a fault

uninsured motorist

coverage for injuries caused by hit-and-run drivers or by drivers without insurance

property damage liability

coverage that protects a driver against claims if the insured's car damages someone else's property

major medical insurance

coverage that provides protection against the high costs of serious illnesses or injuries

personal liability coverage

covers claims for injuries or damages to property caused by you or your family

hospital insurance

health coverage for your room, food, and other hspital expenses

regular medical insurance

health insurance for non-surgical care in a doctor's office, patient's home or hospital

sugical insurance

health insurance that covers all or part of surgeons' fees

medical payments

insurance coverage for medical expenses of a policyholder and family members if they are injured while riding in a car

permanent life insurance

life insurance coverage with a cash value and an investment feature

term life insurance

life insurance that provides financial protection during a set period

disability income insurance

protection against the loss of income caused by a long illness or an accident

deductible

the amount the insured pays before the insurance company pays a claim

depreciation

the decrease in value of property

beneficiary

the person named in the life insurance policy to receive the benefits

coinsurance

the sharing of expenses by the policyholder and the insurance company