Test #3 | AHRM 2304 - Family Financial Management, Quizzes of Financial Management

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TERM 1 property insurance DEFINITION 1 Protection from financial losses resulting from the damage to or destruction of your property or possessions TERM 2 liability insurance DEFINITION 2 protection from financial losses suffered when you are held liable for others' losses TERM 3 risk DEFINITION 3 uncertainty about the outcome of a situation or event TERM 4 risk management DEFINITION 4 process of identifying and evaluating purely risky situations to determine and implement appropriate management TERM 5 peril DEFINITION 5 any event that can cause a financial loss TERM 6 risk retention DEFINITION 6 consciously accepting that some risks simply arise in the course of one's life and consciously retaining that risk TERM 7 deductible clause DEFINITION 7 requires that the policyholder pays an initial portion of any loss TERM 8 loss control DEFINITION 8 designing specific mechanisms to reduce loss frequency and loss severity TERM 9 risk reduction DEFINITION 9 includes mechanisms such as insurance that reduce the overall uncertainty about the magnitude of loss TERM 10 large-loss principal DEFINITION 10 a basic rule risk management that encourages us to insure the risks that we cannot afford and retain the risks that we can reasonably afford TERM 21 homeowner's insurance DEFINITION 21 combines liability and property insurance coverages that homeowners and renters typically need into single-package policies TERM 22 named-perils policies DEFINITION 22 cover only losses caused by perils that the policy specifically mentions TERM 23 all risk policies DEFINITION 23 cover losses caused by all perils other than those that the policy specifically excludes TERM 24 homeowner's general liability protection DEFINITION 24 applies when you are legally liable for another person's losses other than those that arise our of use of vehicles or your professional duties TERM 25 basic (homeowner's insurance) form (HO- 1) DEFINITION 25 named-perils policy that covers 11 property-damage-causing perils and provides three areas of liability-related protection: personal liability property damage liability, and medical payments TERM 26 special (homeowner's insurance) form (HO- 3) DEFINITION 26 provides open perils protection (expect for the commonly excluded perils of war earthquake and flood) for four types of property losses TERM 27 renter's contents broad form DEFINITION 27 named perils policy that protects the insured from losses to the contents of a rented dwelling rather than the dwelling itslef TERM 28 replacement-cost requirement DEFINITION 28 stipulates that a home must be insured for 80 percent of its replacement value ( some companies require 100%) in order for any loss be fully covered TERM 29 actual cash value DEFINITION 29 represents the purchase price of the property less depreciation TERM 30 contents replacement-cost protection DEFINITION 30 option sometimes available in homeowner's insurance policies pays the full replacement cost of any personal property TERM 31 automobile insurance DEFINITION 31 combines the liability and property insurancecoveragethat most carownersand drivers need into a single-package policy TERM 32 automobile bodily injury liability DEFINITION 32 occurs when a driver or car owner is held legally responsible for bodily injury losses that other people including pedestrians suffer TERM 33 automobile property damage liability DEFINITION 33 occurs when a driver or car owner is held legally responsible for damage o others' property TERM 34 automobile medical payments insurance DEFINITION 34 insurance that covers bodily injury losses suffered by the driver of the insured vehicle and any passengers regardless of who is at fault TERM 35 personal injury protection DEFINITION 35 medical payments coverage for the driver and any passengers for bodily injury losses as well as possibly lost wages and rehabilitation expenses common in no-fault accident states TERM 46 group health plan DEFINITION 46 sold collectively to an entire group of people rather than to individuals such as the group health care policies offered by employers TERM 47 Medicare DEFINITION 47 the federal government's health care program for the elderly TERM 48 Medicaid DEFINITION 48 a government health care program for low-income people funded jointly by the federal and state governments TERM 49 S-CHIP program DEFINITION 49 government program that covers children whose parents are middle income but do not have access to a private health care plan TERM 50 Long term care insurance DEFINITION 50 provides reimbursement for costs associated with custodial care in a nursing facility or at home TERM 51 disability income insurance DEFINITION 51 insurance that covers a portion of the income lost when you cannot work because of illness or injury TERM 52 Social Security Disability Income Insurance DEFINITION 52 under this government program eligible workers can collect some income for up to one year if their disabilities are total meaning that they cannot work at any job TERM 53 health care plan DEFINITION 53 generic name for any program that pays or provides reimbursement for direct care expenditures TERM 54 Health Maintenance Organization DEFINITION 54 Health insurance plans that provide a broad range of health care services for a set monthly fee on a prepaid basis TERM 55 managed care plans DEFINITION 55 any health care plan that controls the conditions under which health care can be obtained TERM 56 comprehensive health insurance DEFINITION 56 insurance that provides protection against financial losses resulting from hospital surgical and medical expenditures with policy limits as high as a $ 1 million or more TERM 57 Preferred Provider Organization DEFINITION 57 group of health care providers(doctors hospitals, and other health care providers) who contract with a health insurance company to provide services at a discount TERM 58 health savings account (HSA) DEFINITION 58 tax-deductible savings accounts into which individuals or employers can deposit tax-sheltered funds to pay medical bills TERM 59 health reimbursement account (HRA) DEFINITION 59 funds that employers set aside to reimburse employees for qualified health expenses TERM 60 certificate of insurance DEFINITION 60 paper or booklet that outlines group health insurance benfits TERM 71 COBRA rights DEFINITION 71 The Consolidation Omnibus Budget Reconciliation Act of 1985 that allows a former employee to remain a member of a group health plan for as long as 18 months if the employee worked for an employer with more than 20 workers TERM 72 guaranteed portability DEFINITION 72 provision that allows an individual to convert group coverage to individual coverage within 180 days before COBRA ends TERM 73 the waiting period DEFINITION 73 long term care policies can pay benefits from the first day of nursing home care or they can include a waiting period. Premiums drop with longer waiting periods TERM 74 benefit period DEFINITION 74 length of time that the individual for whom a policy is written would likely need the care TERM 75 any-occupation policy DEFINITION 75 provides full benefits only if you cannot perform any occupation TERM 76 residual clause DEFINITION 76 feature of own-occupation polices that allow for some reduced level of disability income benefits when a partial rather than full disability strikes TERM 77 Social Security rider DEFINITION 77 provides an extra dollar amount of protection if a person fails to qualify for Social Secuirty TERM 78 Activities of Daily Living (ADL's) DEFINITION 78 insurance companies use the inability to perform a certain number of such activities as a criterion for deciding when the insured become eligible for long-term care benefits TERM 79 Skilled Nursing Care DEFINITION 79 intended for people who need intensive care that is 24-hour a day supervision and treatment b a registered nurse under the direction of a doctor TERM 80 benefit amount DEFINITION 80 long term care plans are generally written to provide a specific dollar benefit per day of care TERM 81 final expenses DEFINITION 81 ONE TIME EXPENSES OCCURING JUST PRIOR TO OR AFTER A DEATH TERM 82 social security survivors benefits DEFINITION 82 government program benefits paid to a surviving spouse and children TERM 83 beneficiary DEFINITION 83 person who receives life insurance proceeds as for the policy TERM 84 needs based approach DEFINITION 84 a superior method of calculating the amount of insurance needed that covers all of the factors that might potntially effect the levl of need TERM 85 term life insurance DEFINITION 85 pure protection against early death pays benefits only if the insurer dies within the time period that the people covers TERM 96 owner/policy holder DEFINITION 96 retains all rights and priveledges granted by the policy, incuding the right to ammend the policy and the right to designate wh TERM 97 insured DEFINITION 97 individual whose life is insured TERM 98 incontestability clause DEFINITION 98 places a time limit on the right of the insurance company to deny a claim TERM 99 insurance dividends DEFINITION 99 surplus earnings of insurance company when the difference between the total premium charged exceeds the cost to the company of providing insurance TERM 100 participating policies DEFINITION 100 life insurance policies that pay dividends TERM 101 death benefit DEFINITION 101 amount that will be paid of beneficiary when the insured dies TERM 102 grace period DEFINITION 102 period of time during which an overdue premium may be paid without a lapse of the policy TERM 103 settlement options DEFINITION 103 choices from which the policyholder can choose in how the death benefit payment will be structured TERM 104 guaranteed minimum rate of return DEFINITION 104 minimum rate that by contract the insurance company is legally obligated to pay TERM 105 current rate DEFINITION 105 rate of return the insurance company has recently paid to policyholders TERM 106 nonforfeiture values DEFINITION 106 amounts stipulated in a life insurance policy that protect the cash value if any if any in the event that the policyholder chooses not to pay required premiums TERM 107 cash surrender value DEFINITION 107 represents the cash value of a policy minus any surrender charges TERM 108 automatic premium loan DEFINITION 108 provision allows any premium not paid by the end of the grace period to be paid automatically with a policy loan if sufficient cash value or dividends have accumulated TERM 109 waiver of premium DEFINITION 109 sets certain conditions under which an insurance policy would be kept in full force by the company without the payment o fpremium TERM 110 guaranteed insurability DEFINITION 110 permits the cash-value policyholder to buy additional stated amounts of cash value life insurance at stated times in the future without evidence of insurability