1. CONSUMER PROTECTIONS

2. 4 BASIC RIGHTS OF CONSUMERS: Right to safety Right to be informed Right to be heard Right to choose

3. What does it mean for the government to regulate something
What does it mean for the government to regulate something? To make sure laws are observed, to protect consumers, to enforce rules governing practices of certain businesses, etc. Why do we have government regulations?

4. What are some businesses that are regulated?

5. FDA – Food & Drug Administration FCC - Federal Communications Commission CPSC – Consumer Product Safety Commission FTC – Federal Trade Commission BCP – Bureau of Consumer Protection ATF – Bureau of Alcohol, Tobacco, Firearms & Explosives

6. FRAUD: To deceive someone for unlawful or unfair gain What are some examples of fraud?

7. INSURANCE

8. WHY IS IT IMPORTANT TO HAVE INSURANCE?
Emergency savings - at least six months of expenses set aside to cover costs of unexpected events
Risk - chance of loss from an event that cannot be entirely controlled
is managed by
Insurance - transfers risk from an individual to an insurance organization
What are examples of unexpected events that may result in a financial loss?

9. INSURANCE POLICY
Coverage – The risks covered and amount of money paid for losses under an insurance policy
If the event happens the insurance company will make a payment to the policyholder (person who owns the policy) to cover all or part of the resulting loss
Premium – Money paid to purchase the policy
Experts say that buying insurance is buying financial security. Do you think this is true? Why or why not?

10. AN ILLUSTRATION OF HOW INSURANCE WORKS
With a 1% chance that any one of them could get sick and require $10,000 in medical care
But, no one knows who will get sick
If each person pays $100 into a “pool” they will collectively have $10,000 to cover the medical costs of the person who gets sick
So, everyone gives up $100, but nobody loses more than $100
99 people do not collect anything, but they gain peace of mind and important protection against large loss
Insurance shifts the risk of big loss from the individual to the insurance company

11. THE BENEFITS OF INSURANCE
Property & Liability
Payments received from an insurance policy can far exceed the premiums paid
Provides financial security and peace of mind
Life
Health
Long-term Care
Disability
Why is the best outcome to have insurance but never collect on it?

12. THE INSURANCE PROCESS
Claim - paperwork submitted to insurance organization describing the accident, illness or injury
Event occurs resulting in loss
Deductible - amount of money paid out of pocket by policyholder before the insurance coverage begins
Remaining amount owed is paid by co-insurance (if applicable)
Policyholder makes claim to insurance organization
Co-insurance - amount of money, after deductible, that is paid jointly by the insured and the insurance company
Insurance organization determines if event is covered by policy
If so, policyholder pays a deductible

13. SOURCES OF INSURANCE Employer Individual Government
In most cases, individuals acquire insurance from a combination of sources
Employer
Special programs for those who qualify and during catastrophes
Health, disability, and occasionally life insurance
Individual
Government
If an employer does not provide insurance, it may be acquired individually

14. TYPES OF INSURANCE

15. HEALTH INSURANCE: Pays for medical bills after illness or injury
DISABILITY INSURANCE: Pays for wages lost when you cannot work after an illness or injury
LONG-TERM CARE INSURANCE: Pays for long-term care & expenses when you aren’t in the hospital

16. PROPERTY & LIABILITY INSURANCE
Property insurance - payment to insured person if his/her property is damaged or destroyed by an accident
Pays for loss to insured person
Liability insurance - payment to others if a member of the insured household accidentally causes harm to other people or property
Pays for injury or loss to others
Provided by individuals

17. TYPES OF PROPERTY & LIABILITY INSURANCE
Automobile insurance
If a person drives an automobile, automobile liability insurance is required by law
Homeowners insurance
Renters insurance

18. When would it be necessary to purchase life insurance?
Provided by employers and/or individuals
Life insurance- payment to beneficiaries if an insured person dies
May cover paid and unpaid work formally done by the individual
Beneficiary- someone who receives insurance money if the insured person dies
Household production- unpaid work, such as child care or meal preparation
Dependent - someone who relies on someone else for money income and care
When would it be necessary to purchase life insurance?

19. You are having a baby and need medical care
WHAT COVERS THIS RISK?
You are having a baby and need medical care
Health Insurance

20. After back surgery, you are unable to work for six months
WHAT COVERS THIS RISK?
After back surgery, you are unable to work for six months
Disability Insurance

21. You are elderly and need assistance to continue living at home
WHAT COVERS THIS RISK?
You are elderly and need assistance to continue living at home
Long-term Care Insurance

22. Your home is destroyed by a tornado and you need to rebuild
WHAT COVERS THIS RISK?
Your home is destroyed by a tornado and you need to rebuild
Homeowners Insurance

23. The car you are driving causes an accident that injures someone else
WHAT COVERS THIS RISK?
The car you are driving causes an accident that injures someone else
Automobile Liability Insurance

24. A sudden death of a family member results in loss of income
WHAT COVERS THIS RISK?
A sudden death of a family member results in loss of income
Life Insurance