Key Insurance Terms and Definitions UPDATED
ACTUAL Questions and CORRECT Answers
Actuary A person who compiles and analyzes statistics to
calculate risk and determine insurance rates and
premiums
Catastrophic Health Insurance Health insurance that provides protection against
the high cost of treating severe or lengthy illness or
disabilities and usually has a high deductible and
lower premiums
CHIP Children's Health Insurance Program. A program
that provides low-cost health coverage to children
in families who earn too much money to qualify for
Medicaid
, Claim A formal request from the customer to an insurance
company asking for a payment based on the terms
of the insurance policy
Collision Coverage Auto insurance that protects you against costs to
repair your own vehicle after a crash
Comprehensive Coverage Auto insurance that protects you against costs to
repair or replace your vehicle after events out of
your control such as weather, vandalism, theft, etc.
Conditions of the Policy The portion of a car insurance policy that spells out
the details for how to make a claim, what
information you must have, how much time you
have, and how to cancel your policy
ACTUAL Questions and CORRECT Answers
Actuary A person who compiles and analyzes statistics to
calculate risk and determine insurance rates and
premiums
Catastrophic Health Insurance Health insurance that provides protection against
the high cost of treating severe or lengthy illness or
disabilities and usually has a high deductible and
lower premiums
CHIP Children's Health Insurance Program. A program
that provides low-cost health coverage to children
in families who earn too much money to qualify for
Medicaid
, Claim A formal request from the customer to an insurance
company asking for a payment based on the terms
of the insurance policy
Collision Coverage Auto insurance that protects you against costs to
repair your own vehicle after a crash
Comprehensive Coverage Auto insurance that protects you against costs to
repair or replace your vehicle after events out of
your control such as weather, vandalism, theft, etc.
Conditions of the Policy The portion of a car insurance policy that spells out
the details for how to make a claim, what
information you must have, how much time you
have, and how to cancel your policy
