Car Insurance
1. You pay (Premium and Deductible)
2. They Pay (Coverage Limit)
What is the main purpose of life insurance?
To replace your income for your family when you pass away
Who owns your house when you have a mortgage?
The bank
How many stage are in health insurance?
***Just the number***
3
What is a premium?
The monthly payment that you make for insurance
If you are driving home at night and hit a deer, what type of car insurance coverage kicks in?
Comprehensive
When would somebody your age want to buy whole life insurance?
1. Work a dangerous job
2. Have a life threatening illness
List three perils that are normally covered under home insurance.
Example that you can't use- A fire
1. Lightning
2. Theft
3. Vandalism
4. Vehicle Damage
5. Weigh of ice or snow
6. Windstorms or hail
7. Sudden cracking
8. Riots or explosions
9. Volcanoes
What type of care do you get for free when you pay your premium?
Preventative care
*Check-ups
What is a deductible?
What does collision coverage cover?
Colliding with another car or hitting a stationary object
What are the three main kinds of life insurance?
Term
Universal
Whole
What type of perils are usually not covered under home owner's insurance?
Natural Disasters
What are the three stages of health insurance? What do you pay for in each?
1. You pay (Premium and Deductible)
2. We pay (Co-Insurance and Co-Pay)
3. They Pay (Out-of-pocket maximum)
What happens when you hit your out-of-pocket maximum in health insurance?
What are the four coverage in car insurance?
1. Liability
2. Comprehensive/Collision
3. Underinsured/Uninsured
4. PIP (Personal Injury Protection)
What does it mean when life insurance has cash value?
What is the co-insurance clause?
A clause when you buy a home through a lender that requires house owners to insure their property. This is because the bank still owns your house.
**Usually 80% of its value
What is the difference between co-pay and co-insurance?
Co-pay: A fixed amount that you pay for a healthcare visit or prescription (Dollar amount)
Co-insurance: A percentage that you pay for medical services
Instead of an out-of-pocket maximum, what do we have in the last stage of car and home insurance?
A coverage limit
What is the limited liability insurance required by Iowa? (Give me the numbers: Example- 30/12/20
20/40/15
20,000 dollars per person for medical injuries
40,000 dollars per incident for medical injuries
15,000 dollars for property damage
You and your spouse both work. Each year, you earn $50,000. How much should you have in life insurance?
4-10 times of your annual income
200,000 dollars - 500,000 dollars
What are the six coverages under home owner's insurance? What do they each cover?
1. Dwelling- Your house or anything attached to it
2. Other structures- Anything not attached to your house
3. Personal Property- Anything you own inside of you house
4. Loss of use- Hotels
5. Personal Liability Insurance- Medical payments if you are being sued
6. Medical Payments- Medical payments if you are not being sued
Deductible: $1,000
Out-of-Pocket Maximum: $3,000
Co-insurance: 10%
Jill received medical care for $4,000. How much does she pay? Assume that she hasn’t hit her out of pocket maximum.
$1,300
At which frequency and severity level do we transfer risk to insurance?
1. Low frequency, low severity
2. Low frequency, high severity
3. High frequency, low severity
4. High frequency, high severity
Low frequency, high severity