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39 Cards in this Set
- Front
- Back
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How much should a home cost in comparison to the buyer's annual income? |
spend no more than 2.5 times your annual income |
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What will the mortgage company request before giving out a loan? |
an appraisal |
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Define risk, peril, and hazard. |
-Risk: chances of loss or injury -Peril: anything that may cause a loss or injury -Hazard: anything that increases the likelihood of a loss |
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Do older people or younger people pay more for health care premiums? |
The older you are when you enroll, the more expensive the premium is |
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What is the typical dollar amount for a copayment? |
$20-30 |
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True or false. Renters insurance protects the tenant by covering... |
TRUE |
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Is it an advantage or disadvantage for renting that the tenants CAN'T take tax reductions? |
Disadvantage |
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True or false. It is a disadvantage of mortgage that... |
FALSE |
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What is a HMO? |
-managed care including prepaid health plan and primary care physician -company assumes more risk than transferring to insurance companies -company tries to promote wellness -contracts with specific providers |
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At what percent is private mortgage insurance required? |
20% or less |
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As interest rates go up, how does it affect how many people can afford a mortgage? |
higher the interest rates, the LESS people can afford a mortgage |
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What is a rate lock? |
once mortgage is approved, the rate of the mortgage is locked for 60-90 days |
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What is subletting? |
leasing your apartment to a subtenant |
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What does personal liability insurance cover? |
if someone is hurt on your property |
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Are blue cross and blue shield the same thing as an HMO? |
NO! |
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What is an umbrella policy? |
provides $1 million or more in coverage for catastrophic events |
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What is an insurance deductible? |
the amount you pay before getting reimbursed (once you pay the max, the insurance company pays for the rest) |
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What is an insurance premium? |
amount you pay monthly for your insurance |
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Is rental insurance important? |
YES! |
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Can a landlord sublet an apartment? |
NO! only the tenant can |
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Are an umbrella policy and a home owners policy the same thing? |
NO! they are different
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True or false. All states require motor vehicle insurance. |
TRUE |
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What is HIPPA? |
portability (you can change jobs and insurance plans without a gap) |
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Define liability. |
legal responsibility for the financial cost of another's losses or injury |
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What is Medicare Part C? |
a combination of Medicare Parts A and B |
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Which is greater: financial problems caused by death, or financial problems caused by disability? |
Financial problems caused by disability are greater |
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What is earnest money? |
portion of home price is deposited as evidence of good faith |
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Define insurance. |
protection against possible financial loss; provides a piece of mind |
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What is an insurance company (insurer)? |
share or assume the financial responsibility for losses from an insured risk |
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What is the basic procedure of buying insurance? |
purchase a policy, insurance firm assumes the risk for a fee, insured policyholder pays a periodic premium |
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Are earthquakes and floods normally covered in basic homeowner's insurance? |
No! These need to be specially covered. |
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Do many renters have renter's insurance? |
nope not really no |
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What do the 3 numbers of bodily injury liability coverage stand for? 100/300/50 |
100: $100,000 man paid by insurance company for injuries to any 1 person 300: $300,000 max paid by insurance company in total (for 2+ people) 50: $50,000 man paid for property damage |
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What is no-fault insurance? |
a law in some states that says that each driver collects from his/her own insurance company, no matter who is at fault for the damage |
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What are dread disease policies? |
insurance for very specific diseases; illegal in many states |
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What is co-payment? |
you pay a fixed amount for each doctor visit or prescription, and the insurance company covers the rest |
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What is Blue Cross and Blue Shield? |
-Blue Cross: hospital care -Blue Shield: surgical and medical expenses |
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What is a Flexible Spending Account (FSA)? |
take out pre-taxed money from paycheck for a specific medical purchase, and the money must be used within a year or it goes away |
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What are the 4 parts of Medicare? |
-Part A: inpatient care, skilled nursing facility (snf) -Part B: doctors services and supplies -Part C: A + B provided by 1 provider -Part D: prescription drug coverage |
