INSURANCE VOCABULARY B Y: J A K E W O LV E RT O N

INSURANCE VOCABULARY B Y: J A K E W O LV E RT O N

CLAIM A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

LIABILITY A type of insurance policy that protects an individual or business from the risk that they may be used and held legally liable for something such as malpractice, injury or negligence.

COVERAGE The amount of risk or liability covered for an individual or entity by way of insurance services.

POLICY A contract generally a standard form contract between the insurer and the insured, known as the policyholder, which determines the claims which the insurer is legally required to pay.

DEDUCTIBLE The amount of expenses that must be paid out of pocket before an insurer will pay any expanses.

POLICY HOLDER It determines the claims which the insurer is legally required to pay.

INSURED Contract is made and whose interests are protected under the policy. In some cases more than one entity may be designed as named insureds.

PREMIUM An amount paid periodically to the insurer by the insured for covering his risk.

INSURER A company that provides insurance

PROBABILITY Most easily be described as making a conclusion based upon deductive reasoning rather than research or calculation.

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 probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.