Unit 6, Insurance: Protecting What you Have

claim

a demand for payment for a loss under the terms of an insurance policy

claim's adjustor

a person assigned to investigate the claim and work with you to fix the damage

umbrella policy

a policy that pays for damage caused by acts of negligence on the part of a property owner after coverage under other policies has been exhausted

personal property inventory

a record of all your personal belonging that are not permanently attached to real property; they are removed when property is sold (lawn mower, furniture, jewelry, etc.)

claim form

formal document you use to request benefit payments according to the terms of your policy

underinsured motorist

insurance coverage that covers you when the cost of repairs from an accident caused by another driver exceeds his or her coverage limits

property insurance

insurance coverage that protects your possessions such as clothes, furniture, electronics, appliances, sports equipment, and computers

renter's insurance

insurance for people who rent that includes personal property protection, additional living expenses, and personal liability coverage

auto insurance

insurance one must carry because if you hurt someone while driving, there is no limit to the amount you can be sued for

uninsured motorists

insurance that covers your lost wages and medical expenses if you are in an accident with someone who doesn't have auto insurance

life insurance

insurance that provides financial support for the people who depend on you in the event of your untimely death

homeowner's insurance

insurance that will protect your home and your personal items

4 options of risk management

1. avoid risk 2. reduce risk 3. accept risk 4. share risk

life changes

1. college 2. career 3. marriage 4. family 5. buy home

4 responsibilities of insurance company

1. keep you informed about policy 2. treat you fairly 3. resolve complaints in timely fashion 4. safeguard your policy

3 ways to record a personal property inventory

1. list on paper 2. digital camera 3. cam corder

driving record

a record of the length of time you have been driving, any driving citations and accidents, and personal information kept by the bureau of motor vehicles; it helps insurance companies determine insurance rates

general liability

a type of auto insurance that covers damage you cause to other people's property and bodily injuries you cause to people outside of your car

comprehensive

a type of auto insurance that covers fire damage to your vehicle, break-ins, vandalism, theft, and natural disasters

medical payments

a type of auto insurance that covers immediate compensation for bodily injury expenses to you and your passengers regardless of who is at fault

collision

a type of auto insurance that covers repairs for damage you caused to your car caused by an accident, whether it involves another vehicle or an object, such as a tree

no-fault insurance

a type of auto insurance that will cover an insured's personal injury claim regardless of who was at fault in the crash

health insurance

a type of insurance that pays medical bills when you or your family becomes sick or injured

liability insurance

a type of insurance that protects you in case you are legally responsible for unintentionally injuring someone or damaging another's property

disability insurance

a type of insurance that protects your earning power; it pays you an income when an illness or injury prevents you from working for several weeks or even years

insurance

a way to guarantee your financial protection against various risks

insurance policy

a written contract detailing how much you will pay for insurance coverage and what an insurance company will cover and pay in the event of a loss

conditions

rights, duties, and responsibilities that every insurance policy comes with, such as promptly contacting your insurance company and providing honest information about what happened

deductible

the amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest

coverage limit

the maximum amount an insurance company will pay if you file a claim

risk

the probability that injury, damage, or loss will occur

risk management

the process of dealing with the chance of a potential personal or financial loss

premium

the sum of money the policyholder agrees to pay an insurance company periodically (monthly, quarterly, annually, or semiannually) for an insurance policy

claim adjustor's job

to investigate your claim and work with you to fix the damage