risk management & insurance basics automobile insurancehealth insurance life insurance property...
TRANSCRIPT
Risk Management & Insurance Basics
Automobile Insurance Health Insurance
Life Insurance
Property & Liability
Insurance
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TRUE OR FALSE: you will be able to transfer all of your risk for a peril
to an insurance company.
What isFALSE?
If you have an insurance policy for $25000 and you suffer $8000 in losses then the insurance company will pay
you this amount.
What is$8,000?
The three main principles of risk transfer.
What isPooling to utilize the Law of Large
Numbers to determine frequency and severity of losses,
The transferee must be willing to assume the risk,
andNot all risk can be transferred?
HIGHER or LOWER: If the frequency risk of loss is higher
then your premium will be this.
What isHIGHER?
HIGHER or LOWER: If the severity risk of loss is higher then your
premium will be this.
What isHIGHER?
HIGHER or LOWER: If the retained risk by the insured is
higher then your premium will be this.
What isLOWER?
This type of automobile insurance is required in all states
(other than no-fault states).
What isAutomobile Liability?
This portion of automobile insurance will pay for damages to other people and their property caused by you in an accident that
is your fault.What is
Automobile Liability?
This portion of automobile insurance will pay for damages to
your car caused by you in an accident that is your fault.
What isCollision?
This portion of automobile insurance will pay for damages to
your car due to vandalism.
What isOther Than Collision
(Comprehensive)?
The 3 normal expenses covered by routine medical expense
insurance.What are
Visits to the doctor,Treatment of basic illnesses,
andPrescription drugs?
These two terms both refer to a specific dollar amount you pay every time you make a claim on
your insurance.What are
Deductibleand
Co-pay?
You have a $12,000 health insurance claim. On your policy, you have a $2,000 deductible
and a 20% co-insurance requirement. This is how much
you will pay for the surgery.What is$4,000?
HMO or PPO: this type health insurance company requires you to see a primary care physician in order to get
a referral to see a specialist.
What is anHMO?
HMO or PPO: this type health insurance company requires you to pay a deductible
and/or co-insurance requirement for major medical treatments.
What is aPPO?
This type of insurance replaces lost income if you become disabled and
unable to work.
What isdisability insurance?
This term refers to the person who receives the payout from your life
insurance policy.
What is abeneficiary?
The normal intent for the use of life insurance.
What arePay funeral expenses,
Pay off debt,Replace lost income,
andPay for college?
The amount paid out by the insurance company if a person has a term life insurance policy
and dies after the end of the policy’s term.
What is$0?
The amount paid out by the insurance company if a person
has a $250,000 limited-pay whole life insurance policy and dies.
What is$250,000?
TERM LIFE or WHOLE LIFE: this type of life insurance normally
has a lower premium.
What isTERM LIFE?
The types of hazards covered by an open-perils property insurance
policy.
What isAll hazards except those specifically
excluded by the policy?
TRUE or FALSE: renters need not get property insurance because
their personal property is insured by their landlord.
What isFALSE?
ACTUAL CASH VALUE or REPLACEMENT COST: The type of property insurance that will pay you the amount needed to buy a
new version of property should it be lost or stolen or damaged.
What isREPLACEMENT COST?