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Insurance

Insurance . Take Charge of Your Finances 1.10.1.G1. Insurance. Method of spreading individual risk among a large group of people to make losses affordable to all. Risk . Risk is the uncertainty about a situation’s outcome Three Major insurable risks Person Property

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Insurance

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  1. Insurance Take Charge of Your Finances 1.10.1.G1

  2. Insurance • Method of spreading individual risk among a large group of people to make losses affordable to all

  3. Risk • Risk is the uncertainty about a situation’s outcome • Three Major insurable risks • Person • Property • Liability- legal responsibility to pay the cost of another person’s losses or injuries

  4. How does it work? • Policy- a written contract describing the terms of an agreement between you and your insurance agent • Will include explanations of: • Coverage-protections provided by the terms of a policy • Premiums- fee a policy holder agrees to pay to be covered by an insurance company • Deductibles- specific amount of loss a policy holder pays before insurance will pay

  5. Purpose of insurance Provide relief from fear of severe financial loss due to hazards and events beyond your control Hazard- a condition that creates or increases the likelihood of loss Indemnification- Meant to get you back to same financial condition you were in before loss occurred New home Healthy

  6. Types of Insurance • Types of insurance can include: • Automobile • Homeowners/Renters • Health • Life • Disability

  7. Video Clip

  8. Automobile Insurance • Automobile Insurance is an arrangement between an individual (consumer) and insurer (insurance company) to protect the individual against risk from automobile accidents

  9. Four types of coverage for Automobile Insurance: • Liability Insurance covers the insured if injuries or damages are caused to other people or their property. • It is the minimum amount of insurance required by law for automobiles • If accident is your fault, insurance will not pay for your losses

  10. Medical Payment insurance • Medical Payment Insurance covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault • It also covers family members injured as passengers or if injured as a pedestrian

  11. Uninsured motorists insurance • Uninsured or Underinsured Motorists Insurance covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance

  12. Physical damage insurance • Physical Damage Insurance covers damages caused to the vehicle • Collision – covers damage to your vehicle from accidents you caused or not covered by other driver • Comprehensive – covers all physical damage losses except collision and other specified losses • Fire, theft, hail, vandalism

  13. Factors that affect cost of Auto insurance • Probability-mathematics of chance used by insurance companies to set premiums • Includes: • Model, style and age • Driver classification • Age, gender, marital status, driving record • Stats- young, single more likely than over 25 married to be in an accident • Location of driver • Big Cities cost more • Purpose- work, get around town • Claims- request for reimbursement for a loss under the terms of an insurance policy

  14. Choice, Chance and Control Video

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