INSURANCE VOCABULARY Adrian Medina Unit 4

INSURANCE VOCABULARY Adrian Medina Unit 4

CLAIM a demand or request for something considered one's due.

LIABILITY the state of being responsible for something, especially by law.

COVERAGE the extent to which something deals with or applies to something else.

POLICY a course or principle of action adopted or proposed by a government, party, business, or individual.

DEDUCTIBLE a specified amount of money that the insured must pay before an insurance company will pay a claim.

POLICYHOLDER a person or group in whose name an insurance policy is held.

INSURED a person or organization covered by insurance.

PREMUIM an amount to be paid for an insurance policy.

INSURER a person or company that underwrites an insurance risk; the party in an insurance contract undertaking to pay compensation.

PROBABILITY the extent to which something is probable; the likelihood of something happening or being the case.

INSURANCE a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.

RISK a possibility of harm or damage against which something is insured.