4.02 Power Point Notes_ Insurance Terms Organizer

Complete the following chart with the appropriate term, definition, and/or example.

Term / Definition / Example
the fee paid to an insurance company in return for the insuring of property and casualty insurance and life and health insurance to individuals or businesses
Insurable Interest
A 16 year old male gets automobile insurance for a 2012 Ford Mustang Convertible with a V-8 engine.
Hurricane Fran destroyed many homes due to flooding.
a condition that makes a peril more likely to happen or that increases the seriousness of a loss / An insured builds his house 200 feet from the Atlantic ocean
a decline in value. When there is a reduction in quantity, quality, or value of something, a loss is said to occur.
is a social and contractual device that transfers the risk of financial loss from individuals or businesses to an insurer
Insurance policy

4.02 Power Point Notes_ Insurance Terms Organizer (Continued)

Term / Definition / Example
A $2000. custom stereo and $3000. custom wheels are not covered if stolen or damaged
an insured notifies his insurance company that a tree fell on his roof.
deductibles
insured / one for whom insurance is written
Allstate, State Farm, Geico,
Progressive, Farm Bureau

4.02 Power Point Notes_ Automobile Insurance Terms

Complete the following chart with the appropriate term, definition, and/or example.

Term / Definition / Example
John buys insurance for his new Mustang. The insurance company sends him a written copy of the insurance policy.
Liability Coverage / Jessica is driving on Route 17 and accidently run in the rear of the another vehicle at a stop light. The occupants of the other vehicle are injured.
Physical injury to or destruction of or loss of use of tangible property such as other vehicles, buildings, telephone poles, fences etc. / .
Collision Coverage / A driver falls asleep and his vehicle crossed the median and strikes another vehicle
This coverage is elective coverage by the insured that provides specific
coverage for incidents requiring towing of the insured vehicle(s), provides
coverage for one of a kind vehicles, classic autos or other special vehicles
Rental coverage provides coverage for covered accidents to the insured’s vehicle.
Custom insurance provides for documented value of a custom auto or motorcycle or antique or one of a kind vehicles
Jim’s vehicle is struck by a hit and run vehicle. The vehicle and driver are caught and arrested, but the driver has no vehicle insurance to cover your loss.

4.02 Power Point Notes_ Automobile Insurance Terms (Continued)

Term / Definition / Example
Underinsured Motorist Coverage / .
Your car is involved in an accident. Your car is towed to be repaired and a rental vehicle is provided at no cost by your insurance.