Insurance

insurance agent

An employee who sells insurance from one insurance company.

COBRA (Consolidated Omnibus Reconciliation Act)

A federally mandated program that allows individuals to continue subscribing to heath care insurance at group rates after an event that might have ended their coverage (e.g., being fired or a divorce).

PPO (Preferred Provider Organization)

A health care plan with preferred providers where most or all in-plan health care needs are covered. The plan covers a lower percentage of the costs when subscribers see out-of-plan health care providers.

Patient Protection and Affordable Care Act

A law signed by President Obama in March 2010. PPACA includes a number of health-related laws that will take effect over the next four years, including prohibiting denial of coverage based on pre-existing conditions, expanding Medicaid eligibility, allowing dependent children to remain on their parents' insurance plan until they turn 26, and restricting insurers' ability to enforce annual spending caps.

group life

A life insurance policy that is offered to a group of people under a master policy and that does not require medical examinations. It is usually issued to an employer for its employees or to members of an association.

pre-existing condition

A medical condition that has been diagnosed before an individual enrolls in a health care plan.

roadside assistance

A program that provides you with a toll-free telephone number to call 24 hours a day, 365 days a year. This is for assistance when your vehicle breaks down or when there is a vehicle emergency.Term

Exclusion

A provision within an insurance policy that eliminates coverage for certain acts, property, types of damage, or locations.

actuarial table

A table that shows the probability that a person will die before his next birthday. Actuary,A mathematician who calculates the likelihood of events and prices insurance based on that likelihood.

HMO (Health Maintenance Organization)

A type of insurance model. Under this model, providers contract to receive more patients and in return usually agree to provide services at a discount.

disability insurance

A type of insurance that covers a portion of one's living expenses in the event that a subscriber becomes unable to work.

long-term care insurance

A type of insurance that covers nonmedical costs associated with a long illness, such as nursing homes and assisted living services.

Liability

A type of insurance that protects you from lawsuits, usually against your customers or people using property that you own.

HIPAA (Health Insurance Portability and Accountability Act)

An act of congress that protects health insurance coverage for workers and their families when they change or lose their jobs.

gap insurance

An automobile insurance option that covers the difference between a car's actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company. This option is mainly used for leased cars.

insurance broker

An independent insurance agent who sells insurance policies from more than one insurance company.

pre-paid insurance plan

An insurance plan in which subscribers pay in advance for unlimited medical care.

no-fault insurance

Auto insurance coverage that pays for each person's financial losses resulting from an automobile accident regardless of who was at fault. Also refers to an auto liability insurance system that restricts lawsuits to serious cases. Only a few states require this type of insurance.

Peril

Exposure to the risk of loss.

Exclusion

Health care costs that are not covered by a given insurance plan. Examples can range from nonprescription drugs to dental care.

group insurance plan

Health insurance purchased by a group, usually an employer, for its members. The employer usually pays some or all of the premiums for group insurance.

liability insurance

Insurance for which the policy holder is legally obligated to pay because of bodily injury or property damage caused to another person,

comprehensive coverage

Portion of an auto insurance policy that covers damage to the policyholder's car caused by an event other than a collision. Examples include damage from fire, explosions, earthquakes, floods, riots, and theft.

collision coverage

Portion of an auto insurance policy that covers the damage to the policyholder's car from a collision, whether it was the insured's fault or not.

personal injury protection coverage

Portion of an auto insurance policy that covers the treatment of injuries to the driver and passengers of the policyholder's car. Examples include benefits for medical expenses, loss of income from work, essential services, accidental death, funeral expenses, and survivor benefits.

uninsured/underinsured coverage

Portion of an auto insurance policy that protects a policyholder from uninsured/underinsured and hit-and-run drivers.

Deductible

The amount an insured person must pay before the insurance company pays the remainder of each covered loss, up to the policy limits.

Premium

The cost of an insurance policy.

Premium

The cost of an insurance program, usually charged monthly.

medical underwriting

The process by which an insurer decides whether to offer coverage to an individual or group, and at what premium.

Beneficiary

This is the person or entity named in an insurance policy to receive its benefits. cash value fund,If you have a whole life insurance policy and not a term policy, it can build up a cash value over time the way a savings account does. This is its cash value or surrender value.

medical insurance

This pays for medical and funeral expenses incurred in an auto accident, regardless of fault.

Annuity

the insurer agrees to pay the insured an identified sum of money periodically. The purpose is to protect against risk as well as provide money in the form of a pension at regular intervals.