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