Insurance
Example of claim
An application paper
What type of coverage is needed when a tree falls over on your car on your property?
Comprehensive
claim
Formal request to an insurance company for coverage pr compensation for covered loss or event
Types of Health Insurance
Group health plan Individual health plan Government health plan
Principle of Subrogation
Insured party surrenders its rights against third party to insurance after receiving compensation for loss
and example of Mitigate
Medicare
Example of insurable interest for life insurance.
Other family members affect the interest for life insurances If someone got married Divorce
Example of hazard
Protects a property owner against damage
Mitigate
makes less severe
A car is considered "totaled" if the value of the vehicle is greater than the replacement cost.
true*
How much life insurance should you have?
10-15 times your income
Name four factors that are considered for life insurance.
Age,Health,History,Job
What is the purpose of life insurance?
Financial protection
#1 reason for bankruptcy
Health Care costs
Types of Compulsory Insurance
Health or car Insurance
Compulsory Insurance
Insurance that an individual or business is legally required to buy
Health Insurance
Insurance that covers medical illness or injury.
What type of auto coverage is required in almost every state?
Liability
Investing
Long term less liquid buying assets to generate returns higher risk
Example of Principle Subrogation
To overlook the damage to see what you owe
Insurance Investigators
determine if claim is legitimate
Ellie has a home that is valued at $250,000. Her home insurance coverage is for $180,000 with a $1,000 deductible. A second hail storm hit her home this year and caused $40,000 worth of damage to her roof. What is the insurance payout?
39,000
Alex owned a home in Hawaii that was hit by a mudslide. The home was valued for $450,000 and Alex had insurance coverage of $440,000 with a $5,000 deductible. How much will Alex collect from his insurance company?
435,000
Copayment
A amount you pay for services like doctor visits ($40)
An example of a policy
A contract between the client and the worker
Coinsurance
A percentage you pay after deductible has met for the year
What is the elimination period?
A period of time in between and injury and receipt of benefit payments
Stock
A share of ownership in a corporation. ownership=equity appreciation potential(but also can depreciate) may or may not receive dividends biggest risk is market risk
Dedcutible
Amount of money paid by the insured in a claim before the insurance company kicks in
Risk
Are financial losses Requires coverage for damage or injury that could occur during test drives
Example of Insurable Interest
Car crash or if your car got stolen
What type of coverage is needed when your car hits the back of another car at a red stop light which causes the other driver to go to the hospital?
Collision
What is the purpose for long-term care insurance?
Coverage that provides nursing home-care and public assistant home programs
things to consider before investing
Do you have a lot of credit card debt? Do you have an emergency fund?
policy
Document that details the terms and conditions of an insurance contract
Insurance Claim Adjusters
Investigates claims to determine how much you insurer should pay
insurance
Is a contract represented by a policy in which individuals or entity receives financial protection
. What is the purpose of disability insurance?
Is to provide income to pay the expenses of life
What is life insurance underwriting and how does it work?
It is process determine the issue of life insurance
What is the purpose of an umbrella policy?
Its extra liability insurance coverage
covering health costs and resulting lost wages for you and your passengers after an accident, regardless of fault
Medical Payments or Personal Injury Protection
An example of deductible
Money to cover yourself
out-of-pocket maximum
Most you pay in a plan year before insurance pays 100%
underwriters
Performs background checks on applicants:determines premium
PRO
Preferred provider Organization ability to choose provider within larger"om-network"group
Actuaries
Quantifies the consequences of risk
insurance agent
Salesperson who meets with potential client to identify needs
peril
Something that causes or has the potential to cause a loss
hazard
Something that makes the occurrence of a peril more likely
Example of a peril
Specific damage to a property or person
What is the difference between term life insurance and permanent life insurance?
Term insurance lasts a certain amount of time and permanent is always
Principle of Indemnity
The insured may not be compensated by insurance company in an amount exceeding the economic loss
insurance is a coverage that protects you if you're involved in an accident with someone who does not have Liability insurance or doesn't have enough liability
Uninsured Motorist
Insurable Interest
When loss of or damage would cause the person to suffer a financial or other kind of loss established by ownership,possession or direct relationship
Term life insurance is the most popular life insurance. What are the negatives to buying term life insurance?
Your premiums get higher when your older There is a limited amount of coverage
Premium
an amount to insurance companies in return for taking on a portion
How stocks make money
buy low,sell high sum of money paid regularly(typically quarterly) to its shareholders
An example of Premium
end of the year bonus
It is a requirement by law to have homeowners insurance.
false
It is unlawful to discriminate based on gender for car insurance.
false*
HMO
health maintenance organization
bond
lending money to a company or government debt/lender=fixed income No appreciation receives fixed payments and principal back at end of term Biggest risk is invest rate sensitivity and credit/default risk
types of insurance
life,car,house and health
saving
short term liquid emergencies and future purchases low or no risk
Example of Principe of Indemnity
the money you get for what you lost
For home and Auto Insurance the deductible is for each claim
true