Chapter 14 Vocabulary

2. covers loss amounts that are higher than those covered by primary policies
5. insurance that insures the policyholder against financial loss due to damage to or loss of a dwelling and personal property and possessions
10. covers passenger vehicles and protects the beneficiary against the financial aspects of a traffic accident
11. possibility of loss but no possibility of gain
13. protects the person who is responsible for an auto accident that results in the injury or death of others
14. contract that defines the type of losses that are covered, amount of coverage in dollars, and other conditions to which the two parties agree
16. amount the insured pays for insurance coverage

1. protects a homeowner if others are injured on the policyholder's property; sometimes referred to as a personal liability insurance
3. eliminates the faultfinding process in settling claims
4. insurance that provides coverage for liability and damage to property under certain conditions
6. decrease in the value of property as a result of use, age, or wear and tear
7. amount of money or other services to which a person is entitled under the terms of his or her insurance policy
8. in insurance, possibility of loss, damage, or injury
9. amount the insured is responsible for paying when a claim is made
12. attachment to existing insurance coverage
15. process of documenting a loss against an insurance policy