Consumer education chapter 14

A point on your record can increase your premium about ___

10%

Insurance agents earn income according to the amount of insurance they sell. Typically they receive ____ of the premiums are clients pay. This means that the more insurance they sell the more income they receive

2 to 4%

____ of insurance claims involve some amount of fraud

20% Fraudulent claims increase the cost of providing insurance protection. Eventually these costs or pass on to our policyholders and higher premiums. To be a lot biding citizen and help keep insurance costs down, report your losses honestly

The least amount of liability insurance you should buy is_____

50/100/25

To fully ensure your house, you should buy coverage for ____ of its replacement value

80%

Insurance companies following ______ and reimbursing losses

80% rule

Call your insurance agent to report the loss. Your agent will send it a _______ to assess the damage and determine the amount of reimbursement

Adjuster

If you're unhappy with the repairs or the repair shop finds more damage than originally estimated talk to ______ Who will work with the repair shop to get the repairs done right

Adjuster

Agents who work for only one company

Agents who are for only one company can sound Sharon's offered by only that company To comparison-shop you must talk to several agents to find the pricing policy you want

Market value

Amount item is worth now

Deductible

Amount you pay before the insurance company pays anything

80% rule

And sure isn't required to reimburse you for the total amount of the loss and less your policy covers at least 80% of your homes actual replacement value at the time of your loss Applies to any loss, not just a total loss of your house

When the value property is not clear, you must have the insurance company May have it _______.

Appraised

The best way to look for an agent is to _______ about their experiences with their agent. Ask how they rate their agent on certain characteristics

Ask family members and

If you accumulate too many points, your insurance company will drop you, and you may have trouble finding another company willing to ensure you. Because it was require all drivers to carry auto insurance, your state will send you to an insurance company if you cannot find one I will ensure you. But as a _____ you will have to pay very high premiums for coverage

Assigned risk

One good way to gather information about insurance companies is to check ______ in most libraries. This publication rates insurance companies according to their financial health history strength and weaknesses

Best insurance reports

To protect you against financial loss including the cost of your legal defense when you are legally responsible for entering other people in an automobile accident

Bodily injury liability coverage

Some types of ____ are more expensive to repair or replace and others. Statistic show that the Ascenta still popular cars more often than other types of cars. If you have one of these high-risk cars, your premiums for the fact that risk

Cars

Causes an increase in car insurance costs

Cars are more complicated today-more expensive to repair Medical technology Lighter cars because more fuel-efficient = more injury and damage than accidents involving heavier cars Americans more likely to sue them in the past

If you do have a lost covered by the policy, you file a _____A formal request for the payment from the insurance company

Claim

If your losses lessen the amount of the deductible, there is no need to contact your insurance company. You have to pay the full amount of the loss. But if you have a larger loss, call your insurance company to report it into file ____

Claim

The easiest way to check the quality of the companies claim service is to use _____ I minor in your library. Every few years and evaluates consumer satisfaction with major insurance companies. You can compare how long it takes companies to settle claims and how many are disputed. Many smaller insurance companies are not included in these reports

Consumer reports

Replacement value

Cost of replacing the item regardless of its market value at the time of the loss

Comprehensive and collision coverage often carry a _____

Deductible

The fact that a company offers a low price ____ you should buy from that company

Does not

You may have to buy special riders to cover ______

Excluded items such as stamp or queen collections, laptop computers, valuable jewelry

Appraisal

Experts determination of the value of a piece of property

Reduce your premiums

Good driving record, moderately priced car, safety features in your car, being a good student, take a drivers education course, live just outside the city limits in a safe neighborhood, increase the size of your deductibles

Uninsured and underinsured motorist coverage

He's medical and damage expenses for you and your passengers cause bad driver without insurance it with two little insurance to cover the loss, it does not cover the other driver

Please report

Helps protect you in case your account of the accident and the other drivers disagree

The greater the amount of coverage you choose, the ______ The premiums

Higher

The more claims you make on your policy, the more you cost the Company, so your premiums will be _____

Hire

Ways to reduce your premium on house insurance

Increase your deductible-if you make a few claims this will save you money in the long run Upgrade your home Install smoke detectors Install more security Special discount

To Insure something must have a ______ in the item. It must be something of value that of loss would cause your financial harm

Insurable interest

To manage risk of financial loss from illness injury or damage you can buy ______

Insurance

In exchange for your premium, you expect prompt reimbursement for losses and a courteous knowledgeable ______ Who will look out for your interests. Is it important to shop for a good agent as well as a reliable insurance company

Insurance agent

To prove your loss show your ______ to the adjuster

Inventory list and pictures

The ______ portion of your homeowners insurance policy covers bodily injury or damage you caused to others well on your property or other locations. Also covers damage you do to someone else's property. Also applies if you cause injury to someone else or damage someone else's property when you're not at home. Does not cover injuries you cause with your car

Liability

_____ could you help the family financially survive the loss of a loved one or the loss of income or services of someone who helps support the family

Life insurance

Risk management

Limiting possible financial losses to match you can handle

Factors affecting your premium for house insurance

Location, age of the house, distance to a fire station or

Paying for basic liability covers is expensive. Increasing this to a larger amount does not cost more though. You should also purchase enough ______ to cover injuries that might result from an accident

Medical payments insurance

Allstate set a ______ amount of liability insurance that you must buy

Minimum

Driving record

Official list of accidents and traffic violations, affects your premium

Comprehensive coverage

Pays for damage to your car cause by something other than a collision, covers your losses of your card is vandalize or stolen, may not cover some items in your car, may have to purchase a rider to cover these items

Property damage liability coverage

Pays for damage you caused to another person's property, it does not cover damages to your car

Medical payments coverage

Pays medical and funeral expenses for you your family members and other passengers in your car because of injury sustained in an accident-no matter Who caused the accident

In the interior of your home, the _______ includes items such as furniture appliances and close

Personal property

The ______ portion of homeowners insurance covers damage to our loss of your home and its contents. The cover is not only the physical structure house but also any unattached structures on your property such as separate garage or storage shed

Personal property

Collision coverage

Peyser damage to your car cause by karting with another object or car, can be the most expensive portion of an automobile policy

When a police officer gives you a ticket or you cause an accident, ______ maybe added to your record with the State Bureau of motor vehicles

Points

When you Buy insurance you sign a legal contract called ____

Policy You become the policyholder

In exchange for this protection, you make a regular payment called a _______ to the insurance company

Premium

Insurance that protects you from financial loss when things you own or stolen damaged or destroyed, consumers typically by four homes cars and valuable possessions, pays based on either the items market value or replacement value

Property insurance

Personal insurance

Protect you, your spouse and your children against financial loss due to disability or death Health and life insurance Employers pay part of the cost of health insurance for their employees

Liability insurance

Protects you from losses that can cause others. Up to stated Maximum pay the cost of damage medical expenses and legal fees if you are sued

Renters insurance

Provides about the same property and liability coverage is homeowners insurance, just doesn't cover the structure itself or accidents to take place outside the house of your rented apartment, The owner of the apartment is responsible for these losses

Homeowners insurance

Provides personal property and liability protection for your home

The purpose of buying insurance is to receive _____ for your loss. You must pay your deductible for each incident before your insurance will pay anything

Reimbursement

Independent agents

Represent many insurance companies

The chance of the policyholder will have the lost that requires reimbursement

Risk

Insurance provides _____. Benefits you indirectly

Security

Insurance agent

Sells insurance to consumers, will explain your options and help you match a policy to your needs, when you have questions or a claim you will call your agent for help

The insurance company diversify serviced by selling policies to thousands of people. Insurance works by transferring funds from a large group to the relatively few who suffer losses. All policyholders share the cost of losses. No single policyholder must bear the burden of a financially devastating loss. This is called _____

Shared risk

Rider

Specific addition to an insurance policy that covers a specific type of loss

Another important consideration in choosing a company is the _______ of claims processing

Speed and ease

Policy

Spells out the specific lawsuit is covered in the financial compensation the company will provide if you suffer for that loss

Insurance companies use _____ from past events to predict how many losses are likely to occur within a large group of people

Statistics Can also help insurance companies estimate how much they will have to pay to reimburse particular types of losses

Rating territory

Statistics show that more claims come from some locations and others, insurance companies divide states into rating territories

To speed up claims payments and reduce the number of lawsuits, many states have adopted no-fault insurance laws under no-fault insurance each person insurance company pays ________ no matter who caused accident

That person's losses

Using ______ you can do comparison shopping for insurance companies quickly and easily

The Internet

When you shop for insurance, decide how much of a loss you can raise my cover yourself without too much financial hardship. Then by just seem out of insurance needed to cover the losses it would have ______

Trouble paying for yourself

Coverage is typically limited to $200,000-$500,000. You may purchase additional liability coverage at a relatively low cost. A _______ provides additional liability protection beyond that included in an automobile or homeowners policy

Umbrella policy

The cost of collision and comprehensive insurance depends on ______

Value of your car and the size of the deductible you choose The greater the market value of the car, the larger the premium will be, insurance companies do not normally pay more than the car is worth

Life expectancy

Your insurance premiums will depend on your life expectancy, and estimate of the average number of years remaining in peoples lives based on their gender and current age and health

Your insurable interest in health insurance is ______

Your medical condition Calculate from statistics, know how much cost each type of illness, determine your health insurance premiums