Flashcards
Ch. 20 - Life, Fire and Auto Insurance
Flashcards do conjunto (32)
- 1InsuredCustomer or policyholder
- 2PolicyholderThe insured
- 3InsurerThe insurance company that issues the policy
- 4BeneficiaryPerson(s) designated to receive the face value of the life insurance when insured dies
- 5Face amountDollar amount stated in policy
- 6PremiumPeriodic payments that one makes for various kinds of insurance protection
- 7StatisticianA person who is skilled at compiling statistics
- 8Term insuranceInexpensive life insurance that provides protection for a specific period of time. No nonforfeiture values exist for term
- 9Level premium termInsurance premium that is fixed, say, for 50 years
- 10Cash valueExcept for term insurance, this indicates the value of the policy when terminated. Options fall under the heading of nonforfeiture values
- 11Straight-life insuranceProtection (full value of policy) results from continual payment of premiums by insured. Until death or retirement, nonforfeiture values exist for straight life
- 1220-payment lifeProvides permanent protection and cash value, but insured pays premiums for first 20 years
- 13Paid-up insuranceA certain level of insurance can continue, although the premiums are terminated. This results from the nonforfeiture value (except term). Result is a reduced paid-up policy until death
- 1420-year endowmentMost expensive life insurance policy. It is a combination of term insurance and cash value
- 15Universal lifeWhole life insurance plan with flexible premium and death benefits. This life plan has limited guarantees
- 16Whole-lifeProtection (full value of policy) results from continual payment of premiums by insured. Until death or retirement, nonforfeiture values exist for straight life
- 17Nonforfeiture valuesWhen a life insurance policy is terminated (except term), it represents (1) the available cash value, (2) additional extended term, or (3) additional paid-up insurance
- 18Reduced paid-up insuranceInsurance that uses cash value to buy protection, face amount is less than original policy, and policy continues for life
- 19Extended term insuranceResulting from nonforfeiture, it keeps the policy for the full face value going without further premium payments for a specific period of time
- 20Fire insuranceStipulated percent (normally 80%) of value that is required for insurance company to pay to reimburse one’s losses
- 21Short-rate tableFire insurance rate table used when insured cancels the policy
- 22CoinsuranceType of fire insurance in which the insurer and insured share the risk. Usually there is an 80% coinsurance clause
- 23IndemnityInsurance company’s payment to insured for loss
- 24Liability insuranceInsurance for bodily injury to others and damage to someone else’s property
- 25Compulsory insuranceInsurance required by law—standard coverage
- 26Bodily injuryAuto insurance that pays damages to people injured or killed by your auto
- 27Property damageAuto insurance covering damages that are caused to the property of others
- 28CollisionOptional auto insurance that pays for the repairs to your auto from an accident after deductible is met. Insurance company will only pay for repairs up to the value of the auto (less deductible)
- 29ComprehensiveOptional auto insurance that pays for damages to the auto caused by factors other than from collision (fire vandalism, theft, and the like)
- 30DeductiblesAmount insured pays before insurance company pays. Usually the higher the deductible, the lower the premium will be
- 31No-fault insuranceInvolves bodily injury. Damage (before a certain level) that is paid by an insurance company no matter who is to blame
- 32—
Informações
- Descrição
- Explain and calculate life, fire and auto insurance
- Criado por
- Brooke Young
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- 50
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