How does insurance work:

• You pay an agreed-upon amount of money to an _______ .
• The company pays for losses caused by _______, _______, or _______.

• _______ :legal contract between a person buying insurance (a policyholder) and the insurance company.
• Who is covered
• Types of losses the company will pay
• Amount the company will pay
• The cost of the insurance
• _______ : The representative of an insurance company who sells policies
• _______ : losses that an insurance company agrees to cover.
• _______ : the amount a policyholder pays an insurance company.
• _______ : the portion of a loss that you pay before the insurance company pays the remainder.
• _______ : an oral or written notice to the insurance company.

• _______ have the highest car insurance rates!

• Age, sex, marital status, personal habits and type of vehicle you use.
• Where you live. Example: living near a busy road, in an urban area or rural area.
• Accidents that you have had and number of tickets.

What is……?

• Liability:
• Damage or injury for which _______ are responsible.
• Covers driver and passengers in the _______ car.
• Passengers in _______ car.
• Does not cover your injuries or property damage to _______ car.
• Medical:
• Covers medical and funeral expenses for _______, your _______ , & _______ in your car.
• Uninsured Motorist:
• Pays for bodily injury in accidents caused by _______ drivers.
• Collision:
• Covers the cost of repairs to your car if the accident is _______ fault.
• Covers damage to your car if you’re in an accident caused by a driver who is _______.
• Jamal breaks his arm in a car accident and has to go to the emergency room. His total bill is $740.37. His insurance pays 85% of the bill. How much is Jamal responsible for paying?
• Comprehensive Insurance:
• Covers your car for reasons other than a _______.
• Theft, fire, vandalism, wind, hail. floods.

Health and Life Insurance:

• What is Health Insurance (how does it help you):
• It covers:
• Hospital and _______ expenses
• _______ visits
• _______ drugs
• _______ tests
• Requires deductible and coinsurance
• Some policies allow you to choose any hospital and physician you prefer
• Tim recently stayed in the hospital. His health insurance policy pays 70% of his hospital bills after a $700.00 deductible is met. The total hospital costs were $21,500.00. What were Tim’s total payments after the deductible?

Disability Coverage

• Pays you a percentage of your _______ if you cannot work.
• Short-term disability= _______
• Long-term disability can pay for a _______ of missed work.

Term Life Insurance

• Protects your dependents if you die.
• No _______ value.
• Provides coverage for a set number of _______ .
• The beneficiary receives the face value of the policy if you die.

Home and Renters Insurance:

• What is renters Insurance: it protects your _______ to set amount.
• What is Homeowners Insurance: it protects your _______ and its _______.
• The Centrino’s have homeowner’s insurance that pays 60% after a $600 deductible is met. After a recent storm, the Centrino’s filed a claim to replace their roof. The roof costs $2,000.00 to replace. What was the insurance company’s payment in this case?