Insurance

How does insurance work:

• You pay an agreed-upon amount of money to an .

• The company pays for losses caused by , , or .

Insurance Terms:

• :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.

Types of Insurance

Automobile Insurance:

• have the highest car insurance rates!

How are insurance rates set?

• 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

HMO=

No

Small

Limited

PPO=

More freedom of

Higher

Higher

What are the two types of health insurance : 1.

2.

Which one can be more expensive:

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?