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15 Cards in this Set
- Front
- Back
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What is insurance?
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A financial arrangement between individuals and insurance companies
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What is insurance used for?
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Primary purpose: to protect.
car insurance- loss to vehicle, damages to other person's car |
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1943 McCarran- Ferguson Act
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Prohibits the federal government from regulating insurance; law prohibits FTC from conducting research on insurance industry
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Insurance regulation
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Only at the state level, effectiveness is varied.
Not allowed at the national level FTC can't conduct research on insurance companies Exempt from anti-trust laws (FTC can not do anything about price fixing, etc...) |
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What can insurance companies not do?
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Discriminate
Refuse you because another company did Offer higher rates than the original quote Charge you more than someone in a similar situation Use location as the only reason to refuse homeowners Cancel without 30 days notice |
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Limited tort (auto insurance)
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Giving up the right to pay for pain and suffering
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No-fault
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Own insurance company pays regardless of who's fault it is- limits ability to sue
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Insurance options- No fault
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Your own insurance covers your damages
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Insurance options- Pay-at-the-pump no fault
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Surcharge on gas and annual charge for insurance
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Pay-per-mile
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pay for each mile you drive instead of each car you own (buy miles in advance)
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Life insurance
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Buy it based on income, services, expenses you need to replace, it is NOT an investment
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Investor Rights
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Honesty in ads
Full/accurate info about investments Advance explanation of costs/risks Ethical management |
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Securities and Exchange Commission
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protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
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State Corporation Commission
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The State Corporation Commission will strive to apply law and regulation to balance the interests of citizens, businesses, and customers in regulating Virginia's business and economic concerns and work continually to improve the regulatory and administrative processes.
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Investment Challenges (3)
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• New, complex products being introduced all of the time
• Getting understandable information (getting a lot of booklets about retirement) • Finding initiatives ahead of the curve to protect consumers |
