Insurance Terms and Definitions, Quizzes of Introduction to Business Management

Download Insurance Terms and Definitions and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 Claim DEFINITION 1 A statement of loss that the insured sends to the insurance company to request payment. TERM 2 Health maintenance organizations (HMOs) DEFINITION 2 Health care organizations that require members to choose from a restricted list of doctors. TERM 3 Health savings accounts (HSAs) DEFINITION 3 Tax-deferred savings accounts linked to low-cost, high- deductible health insurance policies. TERM 4 Insurable interest DEFINITION 4 The possibility of the policyholder to suffer a loss TERM 5 Insurable risk DEFINITION 5 A risk that the typical insurance company will cover. TERM 6 Insurance policy DEFINITION 6 A written contract between the insured and an insurance company that promises to pay for all or part of a loss. TERM 7 Law of large numbers DEFINITION 7 Principle that if a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time. TERM 8 Mutual insurance company DEFINITION 8 A type of insurance company owned by its policyholders. TERM 9 Preferred provider organizations (PPOs) DEFINITION 9 Health care organizations similar to HMOs except that they allow members to choose their own physicians (for a fee) TERM 10 Premium DEFINITION 10 The fee charged by an insurance company for an insurance policy.