Chapter 1 - Insurance Basics 1. Arbitration - The process by which the parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision. 2. Better Business Bureau (BBB) - An alliance of U.S. and Canadian businesses that promotes consumer education and ethical business practices. 3. Claim - A written request for reimbursement to cover loss or damage that occurred from a specific event. 4. Coverage - Protection for a specific type of loss on an insurance policy, such as flood or fire. 5. Credit Score - a rating that summarizes an individual's credit history and likelihood of paying back loans. 6. Deductible - The amount of money you, the insured, agree to pay in the event of a loss, prior to the insurer paying the rest of the claim amount. 7. Insurability - Ability of an individual who has applied for insurance to be accepted by the insurer. 8. Insurance - Protection against risk that financially compensates individuals in case of loss. 9. Insurance policy - A written contract between the insurer and the insured, designed to cover specific future losses such as theft, accident, fire, flood, illness, or death. 10. Insurance Score - A rating that predicts the likelihood of an individual to file an insurance claim. 11. Insured - Individual who buys insurance. 12. Insurer - The insuring company. 13. Liability - Legal responsibility to provide compensation for certain types of injury or loss. 14. Misrepresentation - The unethical practice of making false claims about an insurance policy or a competitor's policy, to make a sale. 15. Personal Property - Anything not permanently attached, such as cars, RVs, furniture, clothing, and personal items. 16. Predatory Pricing - The practive of undercutting competitors' prices to drive them out of business and take over their share of the market 17. Premium - Periodic payments made by the insured to the insuring company; premiums create a pool of money that the insurer invests to earn more money, which is used to compensate the insured for losses. 18. Product Options - Special features added to a basic insurance policy. 19. Real Property - Permanent structures and objects such as buildings, fences, and built-in appliances. 20. Risk - Any situation in which some kind of loss or misfortune is possible. 21. Risk Management - An organized strategy for controlling financial loss from pure risk. 22. Small Claims Court - A local court in which claims for small sums of money can be heard and decided quickly and cheaply, without legal representation. 23. Underinsured - Not having enough insurance. 24. Uninsured - Having no insurance.