Defination for insurance policy test_obj-1 by niusheng11

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									Defination for insurance policy test:
Bodily injury liability insurance covers you in the event that you cause an accident that hurts someone
else.

Collision coverage is the part of your car insurance policy that will cover the cost of damages to your car
that occur because of a car accident you cause. If it was someone else's fault, then their insurance will
cover the cost of your car repair.

Comprehensive coverage is a car insurance policy that covers the cost of damages to your car caused by
natural disasters, fire, robbery, theft, vandalism, and more.

Medical payments coverage- will pay for the medical expenses you and your passengers incur in a car
accident, whether or not it was your fault. This is similar to personal injury protection and is often
purchased in place of no-fault insurance. It also covers the medical costs of pedestrians that you may
injure. It does not, however, cover any property damages that occurred in the accident, for either party.

Deductible -Your deductible is the amount of money you agree to pay out-of-pocket (on your own,
without our help) when you make a claim covered by your policy.

This means, for example, that if your repairs cost $1,500 and you've set your deductible at $500,
theoretically, you'll pay the first $500, and we'll pay the remaining $1,000 to get your car fixed and back
on the road.

Coverage- synonym for insurance

Peril- a specific risk or cause of loss covered by an insurance policy, such as a fire, windstorm, flood, or
theft, a named peril policy covers the policyholder only for the named in the policy in contrast to an all-
risk policy, which covers all causes of loss except those specifically excluded.

Policyholder- the individual or firm in whose name an insurance policy is written; an insured.

Risk-the chance of loss or the person or entity that is insured

Replacement cost- insurance that pays the dollar amount needed to replace damaged personal
property or dwelling property without deducting for depreciation but limited by the maximum dollar
amount shown on declarations page of the policy.

Insured- the person, group, or organization whose life or property is covered by an insurance policy.

Insurer- one that contracts to indemnify another by way of insurance : an insurance company or
underwriter

Liability-
Premium- the amount paid or to be paid by the policyholder for coverage under the contract, usually in
periodic installments.

Insurance policy- written contract or certificate of insurance

								
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