Insurance Terminology

Front

Insurance

Back

An arrangement in which an individual will receive financial protection or reimbursement of losses from an insurer.

Front

Policy

Back

The contract between an insurance company and the insured individual.

Front

Coverage

Back

The amount of liability protection offered to an individual through an insurance policy.

Front

Premium

Back

The amount of money paid for an insurance policy.

Front

Grace Period

Back

The amount of time after the premium is due in which a policyholder can make a premium payment without suffering a lapse (break) in coverage.

Front

Deductible

Back

The amount of money you will pay out of pocket before the insurance company will make a payment.

Front

Claim

Back

A formal request by a policyholder to their insurance company for compensation for a covered loss.

Front

Copays

Back

The payments an individual makes each time they get medical service.

Front

Out-of-Pocket Maximum

Back

The most a policyholder has to spend for covered services in a year.

Front

Liability Insurance

Back

Protection against claims resulting from personal injury or property damage as the result of an auto accident.