Scenarios
You drop your phone on the sidewalk and crack the screen.
What kind of insurance would help replace it?
Cell Phone Insurance
Define Premium
Required insurance fee to keep policy active.
Mark causes $1,000 in damages. He pays a deductible of $200.
How much money left does the insurance company have to pay.
$800
The policy holder and insured are always the same.
False (not necessarily)
Who is usually the insurer?
An insurance company.
While on travel to America, you suffer a case of internal organ damage and lose your luggage along the way.
What type of insurance would be helpful here? (primarily)
Travel Insurance
Define Policy Holder
The person who makes payments for the insurance.
$2400
Auto Insurance is a mandatory type of insurance.
True
Contract that protects an individual from financial loss.
Insurance Policy
Your kitchen catches fire, and a large portion of furniture and belongings are destroyed.
What type of insurance is this?
Home Insurance
Define Insurer and Insured
Insurer is the person/organization providing the insurance.
The insured are the individuals who are covered by the insurance terms.
Aaron crashes his car, causing $4,000 dollars in damage, but luckily, he has auto insurance.
If he pays $350 as a deductible, how much does the insurance company have to pay?
A deductible usually increases after higher premiums are paid.
False
What are 4 types of insurance?
Common Examples:
Home Insurance
Auto/Vehicle Insurance
Life Insurance
Health Insurance
Mortgage Insurance
Cell Phone Insurance
Travel Insurance
Your neighbor's tree falls on your yard and damages your fence.
Whose insurance usually pays?
The Neighbor's Insurance
Define Deductible
Amount one has to pay out of pocket, before the insurer starts covering the rest.
Your health insurance policy covers 80% of medical costs. Surgery costs $6000.
How much do you pay?
$1200
Insurance protects against loss, not profit.
True
What usually happens when a higher deductible is paid?
You rear-end another car and are found at fault for the damage caused.
What type of insurance (be specific) will cover the other car's damages?
Auto Liability Insurance
Define Liability
Refers to the legal responsibility for causing physical damage to a person or property.
Your insurance company covers 50% in damages for the repairs of your car. You cause $5,000 in damages and pay a $1,000 deductible.
How much does your insurance company pay?
$2,000
Home insurance usually covers flood damage automatically.
False (Seperate)
What law/act in BC helps protect the rights and responsibilities of employees in the workplace, acting like a liability insurance?
BC Workers Compensation Act