SAM+Insurance+Company+-+Glossary

Health Insurance Terms
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Coinsurance- Splitting the cost of a specific coverage under a health plan with your insurance company. AKA copayment

Copayment -See Coinsurance

Health insurance- A dependency on an insurance provider to cover any costs of health care in exchange for payments of premiums

Exclusions- Anything that is not paid for by your health insurance provider.

Health maintenance organization- A nonprofit organization that lowers the cost of certain treatments.

Major Medical Insurance- Another plan under S.A.M. Health insurance that increases the range of treatments and costs of health care covered.

Managed Care- A program that will lower the cost of coverage and increases the quality of care

C.H.I.P- A partnership that covers children who come from lower income families

Medicaid- A partnership that covers families and individuals with lower incomes

Medicare- A partnership that covers people 65 years and older.

Pre existing condition- A condition that is already had before getting health insurance. usually, this raises the cost of coverage, or makes you unable to purchase it in the first place.

Preferred Provider Organization- Having a membership arrangement that lowers the price of coverage. If and when you have to use your insurance for an injury, illness, service, etc, the price will be lowered. Out-of-Pocket expenses-the share of money that you have to pay when purchasing insurance.

Prescription coverage- When health insurance companies cover the cost of prescription drugs.

Auto Insurance Terms
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Car Insurance- Insurance that pays for loss to individuals or property from an auto accident, theft, or other perils specified in the insurance contract.

Liability- Insurance protection that pays for claims or judgments brought against the insured.

Personal Injury Protection (Medical Payments Coverage)- Insurance coverage to pay for the insured's medical and funeral expenses after an automobile accident.

Collision- Insurance to pay for damages to one's own car in case of an accident.

Comprehensive- Insurance to cover losses resulting from a stolen car or for repairs if the car is hit by a falling object or damaged by fire, flood, or vandals.

Uninsured/Underinsured Motorist Coverage- Insurance to protect one's own bodily injury losses if ever hit by an uninsured or underinsured motorist or a hit and run driver.

Rental Car Rider- Expands the insurance to cover a rental car.

No-fault- Insurance that covers certain losses of the insured without considering who is at fault in the accident.

Policyholder- The person who owns an insurance policy.

Insured- The individual who is insured against loss.

Full Coverage- Includes all types of coverage.

Policy- The printed legal document stating the terms of the insurance contract that was issued to the policyholder by the company.

Claim- A formal notice to an insurance company requesting payment of an amount under the terms of a policy.

Premium- The charge for insurance protection.

Deductable- The amount of covered charges an individual must pay before the insurance company begins payments.

Home Insurance Terms
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Homeowners Insurance- Coverage for your place of residence and its associated financial risks. Insurance to pay for losses of personal or real property and for losses resulting from perils specified in the insurance contract.

Personal Property- Property not considered real property, such as automobiles, clothing, and furnishings.

Home Inventory- A list of personal possessions, along with the date purchased, the purchase price, and any information that would help identify an item in case of loss.

Liability- Insurance protection that pays for claims or judgments brought against the insured.

Peril- Exposure to the risk of being injured.

Actual Cash Value- A claim settlement method in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation.

Depreciation- The decrease in the value of the property due to use, deterioration, or the passage of time.

Full Replacement Policy- A homeowners policy that pays to replace, rebuild, or repair damaged property at the cost of replacing the property (up to the policy maximum).

Replacement Value- The claim settlement method in which the insured receives the full cost of repairing or replacing the damaged or lost items/property up to the policy limits.

HO-1- Limited Coverage- First 10 disasters HO-2- Basic Policy- 16 disasters HO-3- The Most Popular Policy-Protects home against all perils except those that are excluded from your list HO-4 Renter- Protects the home you rent and anything you own within the home HO-5- All Inclusive HO-6- Condo- Co-Op- Protects your belongings within the home and structural parts of the building of which you own HO-7- Mobile Homes HO-8- Older Home- Reimburses you for damage done to an older home

Guaranteed or Extended Replacement Cost Coverage- Pays for a certain amount above the policy limit