1. WOW VI Personal Finance Insurance

2. Why do we Need Insurance?? To ‘Make Whole’ the person who suffers a loss. To spread the RISK of loss across many policy holders. A Necessary Evil

3. Actuary An insurance employee who calculates premiums and risks based upon historical data. Fantastic job, but very difficult to attain.

4. Risk The PRODUCT of the likelihood of a loss AND the value of the loss. High Probability X Low Value Medium Probability X Medium Value Low Probability X High Value

5. Liability Something owed to another. With Insurance, it’s Monetary. “You break it, you bought it.“

6. Make Whole Full compensation to the insured for the loss suffered. To ‘Clear’ a Liability Insurance compensation is monetary, it pays to fix or replace whatever is lost.

7. Premiums Periodic payments made to the Insurer for insurance coverage No Payment = No Insurance. DO NOT miss a payment!!!

8. Types of Insurance Auto Collision, Comprehensive Homeowner Fire, Flood, Hurricane, Liability, Theft Health Major Medical, Dental, Vision, Pharmacy Life Term, Whole

9. Collision Auto insurance to compensate for losses due to a collision. Insurance prefers ‘Collision’ to accident, as 99.9% of accidents can and should be avoided.

10. Comprehensive Auto insurance to compensate for losses NOT due to a collision. Includes: theft, vandalism, falling objects, fire, water, or natural disasters.

11. Uninsured Motorist Insurance coverage for losses from a driver who does not have insurance. Covers physical damage, bodily injury, and car repairs.

12. Oregon Insurance Minimums $25,000 for individual bodily injury $20,000 for personal property $50,000 in bodily injury to others $25,000 for Uninsured Motorist