Definitions
A situation involving exposure to danger, harm, or loss.
What is loss?
Who are health insurance policies offered by?
Employers, purchased privately, or through government programs like Medicaid and Medicare.
What does insurance cover?
Accidents, theft, or damage to car.
Why is it important for insurance companies to have a large pool of people paying premiums?
Large group of people = large pool of money for the company to pay for the few people who experience different types of catastrophes.
If 1,000 people all pay $500 a year for insurance, how much is collected by the company?
What is $500,000?
A formal request from the customer to an insurance company asking for a payment based on the terms of the insurance policy.
What is insurance policy?
The lowest monthly premiums but higher deductibles and higher out of pocket maximums.
What is bronze?
In almost all cases, states require this type of insurance.
What is liability insurance?
Why do companies need a large pool of people paying for premiums?
More people paying premiums = more stability
If 20 people have a car crash or hospital visit that costs $10,000 each, how much is that in claims?
What is $200,000?
A percentage you pay each time you receive medical treatment, after you've paid your deductible.
What is coinsurance?
Different from metal tiers and are typically available only for people under 30 or those who qualify for a hardship exemption.
What is catastrophic?
Covers damages you cause to others if you’re at fault in an accident, including bodily injury and property damage.
There are different types of insurance.
What is car insurance, health insurance, disability insurance, homeowner/renter insurance, and life insurance?
Your friend has a large medical bill from an accident and did not have any insurance. What would you suggest they do to start paying off that debt during difficult times?
They can try the catastrophic plan.
The amount of money you agree to pay towards your losses before your insurance coverage begins paying. This amount is yearly for health insurance and per insurance use for car, renter's and homeowner's insurance.
What is deductible?
This plan is popular with people who expect some regular medical care but do not want very high monthly payments, which is manageable for people to use this plan.
What is silver?
Covers damage to your own vehicle if you collide with another car or object, regardless of fault.
What is collision coverage?
You pay a little over time to avoid losing...
a lot all at once.
Jordan has a deductible of $750. He damages his car in an accident, and the total cost to repair it is $2,400. How much does Jordan's insurance have to pay?
What is $1,650?
When someone with insurance endures a negative outcome, such as injury or theft, and expects payment from the insurance company to compensate them.
What is risk?
Requires you to select a primary care physician as they provide routine care and decides when you need additional services.
What is HMO?
Covers damage to your car that isn’t caused by a collision, such as theft, vandalism, or natural disasters (like a tree falling on your car).
What is comprehensive coverage?
Gives money to your family if you pass away, helping them with funeral costs or lost income
What is life insurance?
Alicia has a policy that has comprehensive and collision deductibles of $500 and a Bodily Injury Liability coverage limit of $50,000. She hits another driver and injures them severely. The case goes to trial and there is a verdict to compensate the injured person for $40,000. How much does she pay for the person's injuries?
Nothing because her insurance company pays the full $40,000.