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Insurance Vocab 2
Term | Definition |
---|---|
at-fault | In an car accident, the person who caused the accident. He/she is liable for th damages. |
peril | The cause of damages to your property. Examples: lightning, windstorms, hurricanes. |
co-pay | In health insurance, the amount you owe each time you receive certain types of medical care. |
beneficiary | The person who is designated as the recipient of a life insurance payment. |
catastrophic health insurance | A type of health plan with low monthly premiums and a high deductible. Better for someone in good health. |
Preferred Provider Organization (PPO) Plan | Your insurer will pay a portion of your bill if you visit a doctor out of your network, but it's cheaper to stay in network. You don't need a referral to see another doctor. |
Health Maintenance Organization (HMO) Plan | You have to see doctors and hospitals in the HMO network. A cheaper health plan but fewer choices. |
liability | Minimum auto insurance required in most states--covers only the other person, car, or property for damage, loss, or injury, not your car or person. |
collision | Coverage that pays for damages to your vehicle after a collision either with another car or an object. |
comprehensive | Called OTC (other than collision), adds protection against things like hail, fire, vandalism and more. |
uninsured or underinsured motorist coverage | Can cover your damage or injury if you're hit by an insured or underinsured driver. |
personal injury protection | “No-fault insurance,” covers the healthcare expenses associated with a car accident. PIP covers medical expenses for both injured policyholders and passengers, even if some don’t have health insurance. |