Chapter 9

Question 1

An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer

Answer 1

Insurance

Question 2

The contract between an insurance company and the insured individual

Answer 2

Policy

Question 3

The amount of liability protection offered to an individual through an insurance policy

Answer 3

Coverage

Question 4

The amount of money paid for an insurance policy

Answer 4

Premium

Question 5

The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse in coverage

Answer 5

Grace Period

Question 6

The amount of money you will pay out of pocket before the insurance company will make a payment

Answer 6

Deductible

Question 7

A formal request by a policyholder to their insurance company for compensation for covered loss

Answer 7

Claim

Question 8

The payments an individual makes each time they get a medical service

Answer 8

Copays

Question 9

The most a policyholder has to spend for covered services in a year

Answer 9

Out-of-Pocket Maximum

Question 10

Protection against claims resulting from personal injury or property

Answer 10

Liability Insurance

Question 11

Protection for damage to your car resulting from a collision with another car or object

Answer 11

Collision insurance

Question 12

Protection for loss or damage to your vehicle caused by something other than a collision

Answer 12

Comprehensive Insurance

Question 13

Protection for you and passengers if you’re hit by an uninsured or underinsured motorist, or if you are the victim of a hit and run

Answer 13

Uninsured/Underinsured Motorist Protection

Question 14

a component of auto insurance that pays for medical expenses, loss of wages and other financial issues of the driver and passengers of the policyholders vehicle

Answer 14

Personal Injury Protection (PIP)

Question 15

Protection for losses to a private residence and the possessions within it, as well as liability coverage against accidents in the home on the property

Answer 15

Homeowners Insurance

Question 16

Protection for destroyed or stolen personal property for a renter

Answer 16

Renters insurance

Question 17

Optional extended liability coverage that can be added to auto or homeowners policies

Answer 17

Umbrella Insurance

Question 18

Coverage for an individual’s (or family’s) medical expenses from illness or injury

Answer 18

Health Insurance

Question 19

Aka Obamacare; the healthcare reform law enacted in 2010, intended to make affordable health insurance more available

Answer 19

Affordable Care Act (ACA)

Question 20

The process of employers paying for a portion of their employee’s insurance premiums

Answer 20

Subsidizing

Question 21

A platform where individuals, families, and small businesses can compare health insurance plans

Answer 21

Health Insurance Marketplace

Question 22

A health plan with a high minimum deductible for medical expenses

Answer 22

High-Deductible Health Plan (HDHP)

Question 23

A tax-exempt savings account deductible to health care costs; only available for individuals on high-deductible health plans (HDHP)

Answer 23

Health Savings Account (HSA)

Question 24

The maximum amount of lifetime benefits a person can receive from their insurance company

Answer 24

Lifetime Limit

Question 25

People who are designated by the policyholder to receive the death benefit of a life insurance policy

Answer 25

Beneficiaries

Question 26

Benefit paid to the beneficiaries after the policyholder dies

Answer 26

Death Benefit

Question 27

Life insurance for a specified amount of time; at the death of the policyholder the insurance company pays the death benefits to the beneficiaries

Answer 27

Term Life Insurance

Question 28

Life insurance that lasts for the life of the policyholder and uses a portion of the premium as an investment

Answer 28

Whole Life Insurance (or Cash Value)

Question 29

Having enough money saved and invested so a spouse or loved one could live off of it when you die, eliminating the need for life insurance

Answer 29

Self Insured

Question 30

a person who relies on someone for financial support

Answer 30

Dependant

Question 31

life expectancy chart used by insurance agents to figure out life insurance premiums for an individual based on a variety of factors

Answer 31

Actuarial Life Table

Question 32

A type of insurance that will replace a portion of the policyholders income in the event that the policyholder becomes disabled and is unable to work

Answer 32

Disability Insurance

Question 33

The period of time between when a doctor confirms a disability and when the policyholder receives a disability payment

Answer 33

Elimination Period

Question 34

The act of fraudulently gaining and using the personal information of someone else, usually for financial gain

Answer 34

Identity Theft

Question 35

A type of insurance that covers some or all of the costs of nursing home care, assisted living, in-home care, and other end-of-life care

Answer 35

Long-Term Care Insurance

Question 36

Plans to cover expenses and services not on typical policies

Answer 36

Supplemental Insurance