Chapter 8 personal finance
SERVICE CONTRACT RANGE
400-1000
requires many employers to offer employees and dependents who would otherwise lose group heath insurance the option to continue their group coverage for a set period of time
Consolidated omnibus budget reconciliation act of 1986
method of integrating the benefits payable under payable under more than one health insurance plan that the benefits revived from all sources are limited to 100% allowable medical expenses
Coordination of benefits
extreme form of ppo. services rendered by nnaffiliated providers are not reimbursed
EPO
a warranty with car or sold as is
FTC is to show if there is
directly employs or contracts with selected physicians surgeons dentist and optometrists to provide heath care services in exchaged for fixed monthly price
HMO
increases the likelihood of a loss through some peril
Hazard
legislates new federal standards for health insurance portability, non discrimination in health insurance, and guaranteed renew ability.
Heath insurance portability and accountability act 1996
prepaid health plans that provide comprehensive heath care to members
MANAGED CARE
combines characterisics of both HMO and PPO and uses a selected ,contracted o,participating providers.
POS
group of docs. and hospitals. that agree to provide health care at rates approved by the insurer
PPO
an organized strategy for protection assets people
Risk management
insurance benefits are expressed in a term of entitlement to receive specified hospital or medical care then than entitlement to revive a fixed dollar amount for each procedure.
Service benefits
A sign that your group coverage needs supplementing would be its failure to provide benefits for the major portion of your medical care bills (example bill is 1500 and they cover 800 find a individual who would cover most of the remaining amount.
Supplementing your group insurance
Cooperative
a non profit organization whom member owners may save money n certian products or services
Rebate
a partial refund of the price of a product
Service contract
an agreement between a business and a consumer to cover the repair cost of a product. (frequently called extended warrenties
when hospital surgical and physician expenses combined its called
basic health insurance coverage
provision that requires the policyholder to share expenses beyond the deductible amount
coinsurance
credit union
cooperative example
prevents you from collecting benefits from two or more groups policies that would in total exceed the actual charges.
coordination of benefits
WHY SERVICE CONTRACTS may not be wise
cost and exclusion
open dating
describes the freshness or shelf life of a perishable product.
earthquake insurance can be obtained as an_____ or addition of coverage to the homeowners policy
endorsement
national brand products
highly advertised items available in many stores
a list or other documentation of personal belongings with purcase dates and cost info.
house hold inventory
for a fee service contracts will
insure the buyer against losses due to the cost of certain repairs.
a policy with internal limits will pay only a fix amount for your hospital room no matter the actual rate is or it will cover your surgical expenses only to a fixed limit no matter what the actual charges are
internal limits
a policy with internal limits stipuates maximum benefits from specific expenses such as the maximum reimbursment for daily hospital room and board
internal limits versus indemnity
the legal responsibility for the finacial cost of another peronss losses or injuries
liability
present when a person is held responisble for intentional or unintentional actions
liablity
fast growing insurance day in day out assistance that you might need if you ever have an illness or disability that lasts a long time and leaves you unable to care for yourself.
long term care insurance ( LTC
service contract can cover repaires not including
manufacturs warranY
legal responisbility is commoly caused by _____ which is a a faiulre to take ordinary or reasable care
negligence
does self insurence eliminate risk
no it only provides means for covering losses
the cause of a possibel loss
peril
covers the damage or loss of specific items high in value
perosnal property floater
people purchase a policy. the firm assumes a risk for a fee called the _____ which the insured policyholder pays periodically
premium
perosnal risk , property risk and lability risk are types of
pure risk or insurable risk
Federal trade commsion
requires businesses that requires that sell used cares to places a buyers guide sticker in windows of cars for sale
process of establishing a monetary fund to cover the cost of a loss
self insurence
No
service contracts warrenty or not?
risk that carries a chance of either loss or gain
speculative risk
one chain of stores (low cost alternatives to famous name products )
store brand and privete lables are sold by
comparison shopping
the proscess of considering alternative stores, brands , and prices
divide the price by e unit of measurement then compare the unit prices for varies sizes brands and stores
to calulate unit price you
supplements your basic perosnal liablity coverage
umbrella policy or perosnal catastrophe policy supplements
impulse buying
unplanned purchasing, which can result in financial problems
Unit pricing
uses a standard unit of measurement to compare the prices of packages of different sizes.
occurs when a person is held responsible for the actions of anther person
vicarious liability
