Fundamentals of Insurance - Chapter 2 Study Guide Manual Already Passed
Accident zone - Answers an area of an interstate highway to which automobiles involved in an accident
are moved
Aggressive driving - Answers unsafe driving actions, such as speeding, tailgating, running red lights,
weaving in and out of traffic, or ?road rage?
Application - Answers the formal document you read and sign for automobile insurance
Bodily injury liability - Answers automobile insurance that covers physical injury to anyone in other
vehicles involved in an accident that is your fault
Collision coverage - Answers automobile insurance that pays for damage to your vehicle in case of
collision, no matter who is at fault; includes collision with other vehicles, animals, or objects
Comprehensive coverage - Answers automobile insurance that compensates you for physical damage to
your car, including theft, vandalism, hailstorms, and other types of damage; it covers permanently
installed equipment, such as a stereo system, but usually not detachable equipment, such as an antenna
Conditions section - Answers the part of an insurance policy that defines the insured's and insurer's
duties that, under the terms of the policy, must be fulfilled
Coverages section - Answers the part of an insurance policy that details the standard coverages available
for the kind of policy purchased, such as liability, medical payments, and property damage
Declarations page - Answers the part of an automobile insurance policy that lists important information,
such as premiums, coverages, endorsements, and deductibles
Definitions section - Answers the part of an insurance policy that explains specific terms used
throughout the policy, such as ?you? or ?your,? or ?family member?
Depreciation - Answers in automobile insurance, the reduction in the value of a car as it gets older
Endorsements - Answers an amendment to your policy that reflects any changes to the standard policy
Exclusions - Answers losses not covered by a policy
Medical expenses coverage - Answers automobile insurance that pays for any physical injuries you or
your passengers sustain while in the vehicle or while you are a pedestrian
Personal Auto Policy (PAP) - Answers automobile insurance policy designed for personal use of a private
passenger vehicle; the policy covers you and others named in the policy who might drive your car
Personal Injury Protection (PIP) - Answers automobile insurance that compensates for lost wages or
damages, regardless of who is at fault
Accident zone - Answers an area of an interstate highway to which automobiles involved in an accident
are moved
Aggressive driving - Answers unsafe driving actions, such as speeding, tailgating, running red lights,
weaving in and out of traffic, or ?road rage?
Application - Answers the formal document you read and sign for automobile insurance
Bodily injury liability - Answers automobile insurance that covers physical injury to anyone in other
vehicles involved in an accident that is your fault
Collision coverage - Answers automobile insurance that pays for damage to your vehicle in case of
collision, no matter who is at fault; includes collision with other vehicles, animals, or objects
Comprehensive coverage - Answers automobile insurance that compensates you for physical damage to
your car, including theft, vandalism, hailstorms, and other types of damage; it covers permanently
installed equipment, such as a stereo system, but usually not detachable equipment, such as an antenna
Conditions section - Answers the part of an insurance policy that defines the insured's and insurer's
duties that, under the terms of the policy, must be fulfilled
Coverages section - Answers the part of an insurance policy that details the standard coverages available
for the kind of policy purchased, such as liability, medical payments, and property damage
Declarations page - Answers the part of an automobile insurance policy that lists important information,
such as premiums, coverages, endorsements, and deductibles
Definitions section - Answers the part of an insurance policy that explains specific terms used
throughout the policy, such as ?you? or ?your,? or ?family member?
Depreciation - Answers in automobile insurance, the reduction in the value of a car as it gets older
Endorsements - Answers an amendment to your policy that reflects any changes to the standard policy
Exclusions - Answers losses not covered by a policy
Medical expenses coverage - Answers automobile insurance that pays for any physical injuries you or
your passengers sustain while in the vehicle or while you are a pedestrian
Personal Auto Policy (PAP) - Answers automobile insurance policy designed for personal use of a private
passenger vehicle; the policy covers you and others named in the policy who might drive your car
Personal Injury Protection (PIP) - Answers automobile insurance that compensates for lost wages or
damages, regardless of who is at fault
