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7.01
7.01
43
Finance
9th Grade
04/18/2013

Additional Finance Flashcards

 


 

Cards

Term
risk
Definition
Uncertain, unpredictable factors that can lead to losses or damages
Term
insurance
Definition
An arrangement in which an insured pays money to an insurer to gain protection against risks and compensation for losses
Term
policy
Definition
A written contract stating the arrangement between insured and insurer
Term
policyholder
Definition
A consumer who has purchased an insurance policy
Term
coverage
Definition
Potential risks and losses against which an insured is protected by a policy
Term
premium
Definition
A fee paid to an insurance company on a regular basis for coverage
Term
deductible
Definition
An initial amount paid by insured for a loss before insurance compensations begin
Term
health insurance
Definition
Provides compensation for losses due to injury, illness, or disability
Term
basic medical
Definition
Pay a large part of hospital and medical care, may also pay part of some other expenses (e.g. doctor’s visits)
Term
major medical
Definition
Pays for long-term illness expenses after basic medical benefits limits have been reached (e.g. cancer).
Term
HMO
Definition
Health management organizaiton---a health care group that provides health care services to members for a set fee and a small co-pay.
Term
HSA
Definition
Health savings account---you contribute pre-tax dollars to the account for expected medical expenses for the coming year-often set up through your employer-submit claims and receipts for reimbursement up to amount deposited.
Term
PPO
Definition
Preferred providers organization---an agreement between health providers with empoloyers or insurers to provide services at a reduced rate to employees.
Term
POS
Definition
Point of service---members use a primary physician who refers them as needed to participating specialists or members can see non-participating specialist members. But, members pay more to use non-participating health providers.
Term
fee-for-services plan
Definition
A plan in which an insured can select his/her own doctors and hospitals, pay costs at time of visit, and file form with insurance company for reimbursement of covered expenses
Term
CHIP
Definition
Childrens Health Insurance Program - health insurance for children under 18 whose parents earn too much to qualify for Medicaid, but not enough to afford private insurance. Federal funds are distributed by
Term
disability
Definition
An illness or injury that leaves a person unable to work
Term
long term care
Definition
Pays for care when a person with a serious illness or injury cannot care for themselves for an extended period of time
Term
worker’s compensation
Definition
Employers are required to have in every state in some form. Covers medical care, treatment, rehabilitation, and a portion of wages from injuries that occur in the workplace.
Term
Medigap insurance
Definition
May be purchased by Medicare recipients to cover part/all expenses not covered by Medicare.
Term
COBRA
Definition
A federal law that someone who leaves employment may be eligible to keep insurance coverage at his/her own expense up to six months.
Term
pre-existing condition
Definition
An illness or injury that a person has at the time he/she enrolls in a health care plan
Term
renewability
Definition
A patient’s right to restart coverage annually
Term
maximum benefit
Definition
A limit on the number of days one’s care will be covered, or the highest amount that can be paid in benefits for a specific procedure
Term
open enrollment period
Definition
A time period during which a person can enroll in a health care plan
Term
exclusion
Definition
A medical service that is not covered
Term
preauthorization
Definition
Requirement to obtain approval from the plan before having certain treatments or procedures done
Term
primary care physician
Definition
A doctor who provides general medical care and coordinates other health care.
Term
beneficiary
Definition
A group or individual selected to receive the assets of a person when he/she dies
Term
insurance benefits
Definition
Assets or gain received by having an insurance policy
Term
face value
Definition
The amount of money payable to a beneficiary as a death benefit when an insured dies
Term
maturity
Definition
The length of time it takes an insurance policy to reach it full value
Term
Cash value
Definition
The amount of money a whole life policyholder would receive if the policy were surrendered before death or maturity.
Term
term insurance
Definition
A type of insurance that provides coverage for a specific period of time with no investment benefits
Term
level term
Definition
premiums and death benefits stay the same for the life of the policy
Term
decreasing term
Definition
premiums stay the same but the benefits decrease over the life of the policy e.g. for home mortgage
Term
renewable term
Definition
the insured person can renew the policy without taking a physical
Term
convertible term
Definition
the insured person can change the policy from convertible to permanent without taking a physical, tends to be more expensive
Term
permanent life
Definition
(also called cash value life insurance) provides coverage the person’s entire life and includes an investment component
Term
whole life insurance
Definition
a type of insurance that provides coverage for a whole lifetime and grows in face value as premiums and cash accumulate.
Term
limited payment life
Definition
coverage for entire life but premiums are higher than whole life because premiums are paid for a set number of years or until a set age
Term
universal life
Definition
allows adjustments of premium, face value, and level of protection
Term
variable life
Definition
premiums are fixed, but face amount varies with investment results
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