Student Basics - FINAL

7/30/2019 Student Basics - FINAL

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INSURANCE BASICS

What You Dont Know CAN Hurt You


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Basic Concepts of Insurance

Insurance Defined

Risk Sharing

Contractual Agreement

Concept of Indemnity


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Four Major Types of Insurance

Life Insurance

Health and Disability Insurance

Property Insurance

Direct, Indirect losses

Casualty Insurance Liability

Auto, Workers Comp


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Insurance Grouping

In 2003 individuals underthe age of 20 represented4.8% of the drivers

involved in accidents.

Teen drivers wereinvolved in 22% of allmotor vehicle accidents.

Teens were involved in17.0% of all fatal accidents.

*Source: National Safety Council

This information is located on the Insurance Information Institute website at www.iii.org

4.8%

17%

22%

0%

5%

10%

15%

20%

25%

Teen Drivers Involved in Accidents

Drivers

Fatalities

Accidents


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Life Insurance

Whole Life

Straight

Universal

Permanent

Term Life

Single Year

Multi-Year


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Cost Factors

Contract Amount

Type of Policy

Whole, Term

Probable Life Expectations

Gender

Age

Medical History


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Health and Disability Insurance

Types of Policies

Major Medical, Comprehensive

Types of Rating Individual, Group

Health Insurance Options

HMO, PPO

Individual

Group


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Cost Factors

Group Experience

Age, Gender

Medical History

Deductible

Co-Payment Type of Policy


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Property Insurance

Fire and Other Perils

Personal Liability


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Why Should You Buy?

Mortgage Requirements

Financial Ruin

Damage to your home

Damage to your property and belongings

Liability suits due to negligence


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Perils Protected Against

Fire, Lightning, Smoke, Explosion

Windstorm, Hail, Weight of Ice

Riot, Civil Commotion

Aircraft, Vehicles, Falling Objects

Theft, Vandalism, Malicious Mischief Accidental Overflow of Water, Freezing

of Plumbing


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Usually Not Covered

Flood

Earth Movement

Earthquake

Landslide

Mudflow

Intentional Loss by or at the direction

of an insured


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Cost Factors

Policy Limits

Location

Protection

Type of Construction

Loss History Policy Credits


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Automobile Insurance

Definition

History of Automobile Insurance

Financial Responsibility

State Regulation


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Why Should You Buy?

Its the Law

Lienholder Requirements

Financial Ruin

Property damage

Physical damage

Medical costs


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What If I Dont?

Rebuilding a Car A new Ford Taurus costs about $21,000.

If the same car was totaled in an accident itwould cost about $75,000 to rebuild itusing replacement parts.

Loss of Use

Medical Costs At least $2,300 per day


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Primary Types of Coverage

Liability

Personal Injury Protection

Collision

Comprehensive

Uninsured Motorists Other Options


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Cost Factors

Age

Sex

Marital Status

Amount You Drive

Where You Drive What You Drive

Accident and Ticket Record


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Ways to Save

Clean Driving Record

Drivers Training Course

Good Student Discount

Limits/Deductibles

Type of Car Shop Your Company!


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Careers in Insurance

Marketing Agents

Underwriters, Actuaries

Customer Service Reps

Insurance Attorneys

Insurance Adjusters Insurance Educators

and more - over 350 different careers!


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InVEST

Students form and operate model

insurance agencies and an insurance

company home office in the classroom Annually prepares more than 6,000 high

school and community college students

for insurance careers

Teaches marketable business skills


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Want to Know More?

Visit www.InVESTprogram.org

Contact the InVEST Program Manager

at (800) 221-7917 or [email protected]

Student Basics - FINAL

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