Risk Management
The four strategies for dealing with risk
Avoidance, Reduction, Retention, Transfer
A fixed amount is paid by the subscriber at the time of service.
Co-Pay
Provides lifetime protection as long as the premiums are paid when due.
Permanent Life Insurance
What are some causes for Comprehensive Coverage?
Falling objects
Fire
Theft
Explosions or earthquake
Windstorm
Hail
Water or Flood
Vandalism
Riot
Contact with a bird or animal
Glass breakage
Something that causes a loss – fire, lightning, windstorm, hail, explosion, riot, vehicle, smoke, vandalism, breakage of glass, theft, falling objects, weight of ice, snow and sleet, etc.
Perils
What unforeseen or unavoidable events can happen?
Illness
Death
Fire
Theft
Hurricanes and Floods
Auto Accidents
The person who is insured.
Subscriber
A person named by the policy owner to receive the policy benefits at the insured's death.
Beneficiary
What are some major Auto Insurance Coverages
Liability - BI and PD
Collision
Other than Collision
Uninsured and Underinsured Motorist
Covers losses due to damage or loss of personal property and possessions.
Renter's Insurance
What is risk?
Possibility of loss or injury. Someone or something that creates or suggest a hazard. An insurance hazard from a specified cause or source. A measure of the likelihood that something will be lost. The chance that something unexpected will occur.
What is COBRA?
Consolidated Omnibus Budget Reconciliation Act
How does Term Life Insurance work?
It protects for a set time, which is called a policy term.
The amount you will be required to pay before insurance pays for any services.
Deductible
Personal and commercial; provides liability only
Umbrella
What risk can be transferred?
Damage to persons or property resulting from driving a car.
Mortgage payments after the death of a spouse.
Hospital bills from a serious illness.
Loss of personal property because of an apartment fire.
Loss of a valuable ring.
Cost of a canceled cruise.
What is a pre-existing condition?
An illness or injury that happened before you purchased your insurance policy
Cash Value: The amount stated on the first page of the policy that is payable at the insured’s death or the maturity of the policy. Also called “amount of insurance” or “death benefit”.
True or False?
False
What is the BI split limit?
$25k per person, $50k per accident
Insures larger retailers, manufacturers, wholesalers, warehouses and any other commercial operation-property and liability
Commercial Package Policy
What does insurance do?
To protect against losses that cannot be financially handled.
To build an estate to protect your future and your family's future.
To be able to take advantage of credit.
Is vision and dental care included in a comprehensive plan?
No
Virginia law requires that life insurance policies provide at least 10 days to examine your insurance policy after receiving it. Be wary of policies that do not allow you a free look! During this period, read the policy carefully. If you decide you do not want to keep it, you can return it for a refund of the premium you already paid and the policy will be considered void from the beginning.
True of False
True
What is a premium?
Amount of money paid to an insurance company for a policy regularly.
Liability insures specialists in various professional fields: doctors, lawyers, dentists, real estate agents, insurance agents, teachers, etc.
Professional