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43 Cards in this Set
- Front
- Back
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risk
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the chance of loss from some type of danger
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risk management
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how you deal with the chance of a potential personal or financial loss.
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What are four options you have to protect yourself and manage the risk?
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Avoid the risk
Reduce the risk Accept the risk Share the risk |
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Give an example of avoiding the risk.
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If you are worried about a plane crash, you can take the train
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Give an example of reducing the risk
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since you might be hurt in a car accident, wear a seat belt
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Give an example of accepting the risk.
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You may not pay for an extended warranty on a product that doesn't cost alot of money.
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Give an example of sharing the risk.
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where you purchase insurance to protect your house or car.
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Insurance
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means for guaranteeing your financial protection against various risks
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insurance policy
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a written contract detailing what an insurance company will cover, how much it will pay, and how much you will pay
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premium
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the amount you pay for an insurance policy
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coverage limit
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the maximum amount the insurance company will pay if you file a claim
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deductible
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the amount of a loss you must pay out of your own pocket before the insurance company will step in and pay the rest
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name what you should keep in your filing cabient
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current insurance policies
premium statements medical bills you paid inventory of personal assets documentation for claims filed |
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What should you keep in your walet or purse
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auto insurance card
health identification card |
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name some factors that can limit or raise your insurance premium
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age, gender, marital status, type of car, how often the car is used, location, driving record, claim record, credit history
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Who would buy travel insurance?
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someone who goes on a trip
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Who would buy wedding insurance
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someone who is engaged and planning a wedding
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Who would buy malpractice insurance
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doctors
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Who would buy errors and omisions insurance
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businesses that provide services
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who would buy pet health insurance
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people who own pets
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who would buy kidnap and ransom insurance
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people who travel to unstable contries
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general liability
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covers the damage you cause to other people's property and bodily injuries you cause to people outside of your car
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medical payments
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covers immediate compensation for bodily injury expenses to you and your passengers regardless who is at fault
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collison
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covers repairs for damage you cause to your car caused by an accident whether is involves another vehicle or object
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comprehensive
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covers fire damage to your vehicle, break-ins, vandalism, or theft and natural disasters
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uninsured motorists
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covers your lost wages and medical expenses if ou are in an accident with someone who doesn't have auto insurance
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underinsured motorist
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covers you when the cost of repairs from an accident caused by another driver exceeds his or her coverage limits
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what can help reduce an insurance premium
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choose a higher deductible, shop around, ask about discounts, drive less, move to a safer zip code, get married, clean driving record
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what is a typical deductible
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250, 500, 1000
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If you are going to shop around, you should ________________________
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call several different insurance agencies
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What are some of the discounts insurance companies offer?
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good grades, covering more than one car, buying more than one type of policy (car and house policy)
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What does driving less mean?
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a shorter commute to work or take public transportation to work
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How does a zip code affect the rate
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some areas insurance companies charge a higher premium for people who live in a zipcode with higher claims
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you will pay _______________ insurance once you are married
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less
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What is the single biggest thing you can do to reduce your premium
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keep your driving record clean
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What information will you need to provide when shopping for insurance
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name, address, birth date, social security number, driver's license, email address, how you pay for car, car's vin, car's year, make, model, safety equipment, claims you had that were your fault, current insurance company, current liability coverages, policy expiration date
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What documentation do you need to provide if you are in an accident
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copies of auto repair and medical bille, copy of police report
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health insurance
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pays medical bills when you or your family becomes sick or injured
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property insurance
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protects your possessions such as clothes, furniture, electronics, appliances, sports equipment, and computers
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life insurance
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provides financial support for the people who depend on you in the event of your untimely death
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disability insurance
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protects your earning power
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liability insurance
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protects you in case you are legally responsible for unintentionally injuring someone or damaging another's property
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who should buy boat insurance
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someone who owns a boat
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