Presentation on theme: "Corporate Training. What is Insurance? Insurance is the means by which risk is transferred by a person or a business (insured) to an insurer. The insurer."— Presentation transcript:
What is Insurance? Insurance is the means by which risk is transferred by a person or a business (insured) to an insurer. The insurer will reimburse the insured for covered losses. The insurer will pool its resources (premiums) to pay for any covered losses that occur. One simple way of defining insurance is: Exchanging a small certain loss (premiums) for protection against a large uncertain loss.
Property & Casualty Insurance Property and casualty insurance protects against property losses to your business, home or car and / or against legal liability that may result from injury or damage to the property of others.
Property & Casualty Insurance Property insurance covers damages to personal property such as autos, homes, boats, or other luxury items such as jewelry or computers. Casualty insurance covers legal expenses that are incurred from bodily injury or property damage caused to someone else.
Types of Property and Casualty Insurance The two most common types of personal Property and Casualty insurance are Personal Auto Policies and Homeowners Policies. Today we will be discussing the Auto Policy and the individual coverage’s that are typically offered.
Auto Policy Coverage’s Liability Med Pay Uninsured Motorist Underinsured Motorist PIP (FL, KY, NY, OR, UT, TX) Towing Rental Collision Other than Collision (Comprehensive)
Liability Coverage Most states require every licensed driver to carry a certain level of liability insurance. Liability coverage pays for any damage that you inflict on other drivers in an accident. Bodily injury coverage is responsible for injury or death that you cause while property liability covers vehicle and property damage.
Liability Limits Liability insurance is typically written with split limits (25/50/10). The first two numbers (25/50) are the bodily injury limits. The last number (10) is the property damage limit. Lets take a look at an example of liability damages so that we can determine the actual amount that will be paid in the event of a loss.
What is the payout? Jim has a policy with liability limits of 25/50/10. He has an at-fault accident and injures 2 occupants of the other vehicle. One occupant has bodily injuries that will cost $30,000. The other occupant has bodily injuries of $20,000. The other vehicle sustained damages of $13,000. How much will Jims policy pay for this claim?
Medical Payments Medical payments coverage pays for reasonable and necessary medical expenses the insured incurs due to bodily injury caused by an auto accident. Coverage also extends to occupants of the insured’s auto if they are injured as a result of an auto accident. Coverage will also extend the insured if they are a pedestrian and struck by another automobile.
Uninsured Motorist Provides coverage when the other driver is legally responsible for an accident and is not insured. Required in some states, and optional in others. Pays for injuries to the policy holder and their passengers. In states where UMPD is offered the coverage would also pay for property damage.
Underinsured Motorist An auto insurance policy provision that extends coverage to include bodily injury and property damage caused by a driver with insufficient insurance. Designed to provide the injured party with compensation above the limits of the at-fault drivers policy.
Underinsured Motorist… What’s the payout Jim has UIM on his policy with limits of 25/50/10. He is injured in an accident involving another driver. The other driver is at fault and has liability limits of 25/50/10. Jims bodily injuries total $57,500. How much will each policy pay?
Personal Injury Protection PIP coverage, the available limits, and the exact details of how such coverage operates vary by state. The coverage typically handles medical expenses for injuries to you and your passengers. It is usually a "per person" limit. It may also cover you and members of your household if you, as a pedestrian or while riding a bicycle, are struck by an automobile. PIP coverage does not extend to Property Damage.
Towing & Labor Towing and labor insurance covers the cost of towing (up to the policy limits) should the driver’s car become stranded in an auto accident or other situation. Towing and labor insurance also covers other costs associated with a stranded vehicle including keys locked in car, gas delivery, and tire changes. Most companies will only offer Towing & Labor Coverage if the insured vehicle has Comprehensive and Collision Coverage.
Rental Reimbursement If your insured vehicle is disabled because of a loss covered under Collision or Comprehensive Coverage, Rental Reimbursement Coverage will reimburse you for the cost of renting a temporary substitute vehicle while your insured vehicle is out of service. This coverage usually has a maximum limit per rental day, as well as a maximum limit per loss occurrence. Most insurance companies will only offer Rental Coverage if the insured vehicle already has Collision and Comprehensive Coverage.
Collision Collision (COLL) covers your insured vehicle for physical damage that your car sustains when it hits, or is hit by, another vehicle, or another object where the insured driver is at-fault. Collision also covers the upset of your vehicle, such as the unintentionally rolling or flipping of your vehicle. This is the coverage that gives you the ability to file a claim with your auto insurer after your vehicle is damaged in an auto accident with other vehicles or property, or a single car accident. Collision coverage usually requires the payment of a deductible when a claim is made and may be required to secure a new car loan.
Comprehensive Comprehensive auto insurance is a type of insurance coverage that protects against physical damage to your car, and is often referred to as "other than collision" (OTC) coverage, or simply "Comp". Comprehensive coverage will generally require a deductible to be paid by the insured. The comprehensive coverage of an auto insurance policy can be a little confusing - so let's take a look and lay it out in an easy to understand format.
Comprehensive (continued) What Comprehensive Covers Fire Theft Riot Hail, water, or flooding Vandalism Wind Damage resulting from an animal Glass Breakage Missiles or falling objects (the term missiles used here does not refer to the military context - instead refers to any flying or propelled object)