Fundamentals of Insurance Final Test Latest Updated

Risk - AnswerThe Chance of loss happening Insurance Policy - Answerlegal contract designed to cover specific future losses Product Option - AnswerSpecial features added to a basic policy that increase the cost of the premium Insured - AnswerIndividual who agrees to transfer risk by paying certain sums of money to the insurer Uninsured - AnswerAn individual who has no insurance at all Liability - AnswerLegal responsibility, financial obligation Claim - Answerrequest for reimbursement to cover losses due to an event Premium - AnswerSum of money paid by the insured to the insurer to create a pool of money used for compensation Insurance - AnswerProtection taken against risk Personal Property - AnswerProperty such as a cell phone, clothes, and car Insurability - Answerability of an individual to be accepted by the insurer Deductible - AnswerAmount paid by insured before insurer pays on a claim Coverage - Answerpromise to pay a certain type of claim if it occurs