1. Business & Personal Finance
INSURANCE
Business & Personal Finance

2. The protection against possible financial loss.
Insurance
The protection against possible financial loss.
Policy – A contact for insurance between the policyholder and the insurance company
Policyholder – the purchaser of the policy
Premium – a fee paid by the policyholder to the insurer for insurance
Coverage – protection provided by the terms of an insurance company
Insured – the people protected by the policy

3. Types of Risks Risk – the chance of loss or injury
Peril – anything that may possibly cause loss.
Hazard – anything that increases the likelihood of loss through some peril
Negligence – failure to take ordinary or reasonable care to prevent accidents from happening.

4. Homeowner’s Insurance

5. A homeowner’s policy includes all of the following:
The building in which you live and any other structures on the property.
Additional living expenses
Personal Property
Personal liability and related coverage's
Specialized coverage's

6. Added Coverage
Personal Property Floater – additional property insurance that covers the damage or loss of a specific item of high value.
Umbrella Policy – (also called: personal catastrophe policy) supplements your basic personal injury claims.
Medical Payments Coverage – pays the costs of minor accidental injuries to visitors on your property.

7. Factors That Affect Home Insurance Costs
Location of Home Type of Structure Coverage Amount and Policy Type Home Insurance Discounts Company Differences

8. Motor Vehicle Insurance

9. Financial Responsibility Law
Every state in the United states has it!
The law requires drivers to prove that they can pay for damages or injury caused by an automobile accident.

10. Two Categories of Motor Vehicle Insurance
Protection for Bodily Injury
and
Protection for Property Damage

11. Bodily Injury Coverage
Bodily Injury Liability Medical Payments Coverage Uninsured Motorist’s Protection

12. Bodily Injury Liability
Insurance that covers physical injuries caused by a vehicle accident for which you were responsible.

13. Medical Payments Coverage
Insurance that applies to the medical expenses of anyone who is injured in your vehicle, including you.
It also pays if you or your family members are injured while riding in another person’s vehicle or if any of you are hit by a vehicle.

14. Uninsured Motorist’s Protection
Insurance that covers you and your family members of you are involved in an accident with an uninsured or hit- and – run driver.

15. Motor Vehicle Property Damage Coverage
Property Damage Liability Collision Comprehensive Physical Damage

16. Property Damage Liability
Motor vehicle insurance that applies when you damage the property of others.
It protects you when you are driving another person’s vehicle with the owner’s permission.

17. Collision
Covers damage to your vehicle when it is involved in an accident.
It allows you to collect money
no matter who is at fault.

18. Comprehensive Physical Damage
Protects you if your vehicle is damaged in a nonaccident situation, such as:
Fire
Theft
Falling objects
Vandalism
Hail
Floods
Tornadoes
Earthquakes
Avalanches

19. Health Insurance

20. Type of Health Insurance Coverage
Basic Health Insurance Coverage
Hospital Expense
Surgical Expense
Physician Expense
Major Medical Expense Insurance
Long hospital stays
Multiple Surgeries
Hospital Indemnity Policies
Supplement to Basic Coverage and Major Medical

21. Dental Expense Insurance
Vision Care Insurance
Dread Disease Policies
Trip accident, death insurance, cancer policies
Illegal in many states
If you have major medical you are already covered
Long-Term Care Insurance

22. Private Health Care Plans
Private Insurance Companies
Hospital and Medical Service Plans
Health Maintenance Organizations (HMO)
Preferred Provider Organizations (PPO)
Home Health Care Agencies
Employer Self-Funded Health Plans

23. Hospital and Medical Service Plans
Blue Cross
Provides hospital care benefits
Blue Shield
Provides benefits for surgical and medical services performed by physicians

24. Health Maintenance Organizations
Managed Care
Prepaid health plans that provide comprehensive health care to their members. It is designed to control the cost of health care services by controlling how they are used.
Health Maintenance Organization (HMO)
A plan that directly employs or contracts with selected physicians and other medical professional to provide health care services in exchange for a fixed, prepaid monthly premium. Based on the idea that preventative services will minimize future medical problems.

25. Preferred Provider Organizations
A group of doctors and hospitals that agree to provide specific medical services to members at prearranged fees.
Point-of-Service Plan (POS)
Combines features of both HMOs and PPOs

26. Government Health Care Programs
Medicare
Federally funded health insurance program available mainly to people over 65 and to people with certain disabilities.
Medicaid
A medical assistance program offered to certain low- income individuals and families .

27. Disability Income
Provides regular cash income when you are unable to work because of pregnancy, a nonwork-related accident, or an illness

28. Life Insurance Protect against financial losses caused by death
Types of Life Insurance Policies
Term Insurance
Provides protection against loss of life for only a specified term, or period of time. It pays the benefit only if you die during the period that it covers
Whole Life Insurance
A permanent policy for which you pay a specified premium each year for the rest of your life

29. Additional Insurance Vocabulary
Deductible – the set amount that the policy holder must pay per loss on an insurance policy.
Claim – request for payment to cover financial losses.
Liability – legal responsibility for the financial cost of another person’s losses or injuries.
Copayment – a flat fee that you pay every time you receive a covered medical service
Beneficiary – the person named to receive the benefits from a life insurance policy