INSURANCE VOCABULARY BY: CECILY DUNLAP

CLAIM – Insurance Claim: A formal request to an insurance company asking for a payment based on the terms of the insurance policy

LIABILITY Liability Insurance is Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury.

COVERAGE Insurance Coverage is the amount of risk or liability covered for an individual or entity by way of insurance services.

POLICY Insurance Policy is a contract (generally a standard form contract) between the insurer and the insured.

DEDUCTIBLE Deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses.

POLICYHOLDER Policyholder is one that holds an insurance contract or policy

INSURED Insured is the person, group, or organization whose life or property is covered by an insurance policy.

PREMIUM Premium is an amount paid periodically to the insurer by the insured for covering his risk.

INSURER Insurer is a company that provides insurance.

PROBABILITY Probability can 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. INSURANCE

RISK Risk is a situation involving exposure to danger.