1. Insurance

2. Risk Risk is the uncertainty about a situation’s outcome – This can be an unpredictable event which leads to loss or damage

3. Insurance Terms Insurance is an arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk A policy is a contract between the individual and the insurer specifying the terms of the insurance arrangements

4. Automobile Insurance An arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents

5. Automobile insurance types of coverage – Liability insurance – Medical payment insurance – Uninsured or underinsured motorists insurance – Physical damage insurance

6. Physical Damage Insurance covers damages caused to the vehicle – Collision – covers a collision with another object, car, or from a rollover – Comprehensive – covers all physical damage losses except collision and other specified losses

7. Health Insurance Provides protection against financial losses resulting from injury, illness, and disability In 2008 there were more than 43 million Americans or 14 percent of the population without health insurance

8. Life Insurance A contract between an insurer and policyholder specifying a sum to be paid to a beneficiary upon the insured’s death The contract is a policy which states the amount to be paid to the beneficiary upon the insured person’s death

9. A beneficiary is the recipient of any policy proceeds if the insured person dies A dependent is a person who relies on someone else financially

10. What Covers This Risk? You hit and injure a pedestrian in a crosswalk Automobile!

11. After losing her husband to a heart attack, the wife is left alone to care for 2 children Life!

12. You need a cast after breaking an ankle while roller-blading Health!

13. Disability Insurance Replaces a portion of one’s income if they become unable to work due to illness or injury

14. Homeowner’s Insurance Combines property and liability insurance into one policy to protect a home from damage costs due to perils. A peril is an event which can cause a financial loss like fire, falling trees, lightning and others

15. Property Insurance Protects the insured from financial losses due to destruction or damage to property or possessions Liability Insurance protects the insured party from being held liable for other’s financial losses

16. Renter’s Insurance Protects the insured from loss of the contents of the dwelling rather than the dwelling itself

17. What Covers This Risk? Your apartment is broken into and your computer is stolen Renters!

18. Your garage was destroyed by a fire which started by a lightning bolt hitting your home Homeowners!

19. Sick at home from food poisoning after eating a carnival corndog Nothing!

20. You have brake failure. You hit a telephone pole and cause damage to the front of the car Automobile!

21. You get pulled over and receive a speeding ticket on your way to the mall Nothing!

22. A daughter, who is financially responsible for her mother’s nursing home bills, dies from an undetected heart defect Life!

23. A doctor diagnoses a child with tonsillitis during a visit to a clinic Health!

24. Conclusion Review the following terms and concepts: – Risk – Insurance – Policy – Policyholder – Premium – Deductible – Types of Insurance