1.16.4: Key Terms
- Page ID
- 338940
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|---|---|---|---|---|---|
| (Eg. "Genetic, Hereditary, DNA ...") | (Eg. "Relating to genes or heredity") |  | The infamous double helix | https://bio.libretexts.org/ | CC-BY-SA; Delmar Larsen |
| Word(s) | Definition | Image | Caption | Link | Source |
|---|---|---|---|---|---|
| adverse selection | when groups with inherently higher risks than the average person seek out insurance, thus straining the insurance system | ||||
| asymmetric information | a situation where the seller or the buyer has more information than the other regarding the quality of the item for sale | ||||
| coinsurance | when an insurance policyholder pays a percentage of a loss, and the insurance company pays the remaining cost | ||||
| collateral | something valuable—often property or equipment—that a lender would have a right to seize and sell if the buyer does not repay the loan | ||||
| copayment | when an insurance policyholder must pay a small amount for each service, before insurance covers the rest | ||||
| cosigner | another person or firm who legally pledges to repay some or all of the money on a loan if the original borrower does not | ||||
| deductible | an amount that the insurance policyholders must pay out of their own pocket before the insurance coverage pays anything | ||||
| fee-for-service | when medical care providers are paid according to the services they provide | ||||
| health maintenance organization, HMO | an organization that provides health care and is paid a fixed amount per person enrolled in the plan—regardless of how many services are provided | ||||
| imperfect information | a situation where either the buyer or the seller, or both, are uncertain about the qualities of what they are buying and selling | ||||
| insurance | method of protecting a person from financial loss, whereby policy holders make regular payments to an insurance entity; the insurance firm then remunerates a group member who suffers significant financial damage from an event covered by the policy | ||||
| money-back guarantee | a promise that the seller will refund the buyer’s money under certain conditions | ||||
| moral hazard | when people have insurance against a certain event, they are less likely to guard against that event occurring | ||||
| occupational license | licenses issued by government agencies, which indicate that a worker has completed a certain type of education or passed a certain test | ||||
| premium | payment made to an insurance company | ||||
| risk group | a group that shares roughly the same risks of an adverse event occurring | ||||
| service contract | the buyer pays an extra amount and the seller agrees to fix anything specified in the contract that goes wrong for a set time period | ||||
| warranty | a promise to fix or replace the good for a certain period of time |