Basic Terms
The regular payment an insured person makes to the company to keep the policy in force.
Premium
This type of insurance covers personal possessions and liability for people who do not own their residence.
Renters Insurance
A fixed out-of-pocket amount paid by an insured for covered services, often paid directly at the time of service. (think medical)
Copay
The possibility of suffering harm or loss; danger
Risk
Any act committed to defraud an insurance process, ranging from exaggerated claims to deliberately causing accidents.
Insurance Fraud
The amount you have to pay out-of-pocket before the insurance company will cover the remaining costs.
Deductible
This is the extra liability coverage that goes beyond the limits of an insured's home, auto, or watercraft insurance
Umbrella Insurance
In this instance would you need life insurance and if not what would this be called?
This is the financial status you reach when your youngest child is grown, your mortgage is paid off, and you have enough savings/retirement funds.
No and self insured
The practice of identifying potential risks in advance, analyzing them, and taking precautionary steps to reduce or curb the danger.
Risk management
This classification of fraud consists of policyholders exaggerating otherwise-legitimate claims (e.g., claiming a minor fender-bender caused severe injury).
Soft fraud
The contract in which an individual receives financial protection or reimbursement against losses from an insurance company.
policy
This type of life insurance provides a death benefit only for a fixed policy term and has a generally low premium.
Term life insurance
What type of coverage is this and is it required in the state of Virginia?
Personal Injury Protection and Yes
This is the insurance that protects professionals such as accountants, lawyers, and physicians against negligence and other claims initiated by their clients.
Professional Liability Insurance
This is a formal request to an insurance company asking for a payment based on the terms of the insurance policy
Claim
This auto document contains basic policy information like your policy number, policy period, premium, and deductible amounts.
Known as Whole Life or Universal Life, this type of insurance combines life coverage with a savings component that builds cash value.
Permanent Life Insurance
Business professionals who deal with the financial impact of risk and uncertainty and who determine insurance rates based on geographic location.
Actuaries
This classification of fraud occurs when someone deliberately plans or invents a loss, such as staging an accident or committing arson for profit
Hard Fraud
A person designated as the recipient of funds or other property under a will, trust, or insurance policy
Beneficiaries
A type of insurance policy that covers property that is easily movable, like jewelry or expensive collections, providing additional coverage over normal policies.
Floaters
What are the differences between an HMO and PPO plan?
Access to a network of doctors, hospitals and other healthcare providers
Ability to see the doctor you want without a PCP to authorize treatment
Referral from a PCP not needed to see a specialist
Low or no deductible and generally lower premiums
Coverage for medical expenses outside the plan’s network
Access to a network of doctors, hospitals and other healthcare providers (HMO and PPO)
Ability to see the doctor you want without a PCP to authorize treatment (PPO)
Referral from a PCP not needed to see a specialist (PPO)
Low or no deductible and generally lower premiums (HMO)
Coverage for medical expenses outside the plan’s network (possibly)
Name at least five factors that influence auto insurance premium rates
Gender
Age
Maritial Status
Location
Credit Score
Job or Career
Driving Record: Tickets and Accidents
Type of Vehicle
Year of Vehicle
What are the penalties associated with soft fraud and hard fraud
Soft Fraud: usually considered a misdemeanor, punishable by fines, jail time of up to one year, community service, and probation.
Hard Fraud: Usually considered a felony with prison time