BUSINESS LAW ESSENTIAL STANDARD 4.00 OBJECTIVE : Understand types of insurance.

4.02: Understand types of insurance.

INSURANCE DEFINED BB30 Business Law 4.02Summer 2013 Premiums What are premiums? What type of insurance types have them? Insurable Interest-Financial Responsibility What determines whether there is an insurable interest? Risk- What is risk and how does it affect

INSURANCE DEFINED (CONTINUED) BB30 Business Law 4.02Summer 2013 Exclusions 1. What does exclusion mean? 2. How does exclusion apply to insurance? 3. Why do insurance companies put exclusions in their policies?

INSURANCE DEFINED (CONTINUED) BB30 Business Law 4.02Summer 2013 Claims 1. What is a claim in regards to insurance? 2. How does a policy holder enter a claim?

INSURANCE DEFINED (CONTINUED) BB30 Business Law 4.02Summer 2013 Deductibles 1. What are deductibles? 2. What is the purpose of a deductible for the policy holder?

INSURANCE DEFINED (CONTINUED) BB30 Business Law 4.02Summer 2013 Insurer 1. Who is an insurer? 2. Is the insurer a business/corporation or an individual?

INSURANCE DEFINED (CONTINUED) BB30 Business Law 4.02Summer 2013 Insured 1. What or who is the insured 2. Is the insured always the policy holder or not?

Personal Auto Policy (PAP) Why have a PAP? What does it protect you from? Liability Coverage- What are the two types? What does it protect you from? Property Damage Coverage What does it protect you from? What is an example of this type of coverage? Collision Coverage What does it protect you from? What is an example of this type of coverage? Comprehensive Coverage-Other than Collision What does it protect you from? What is an example of this type of coverage? How is this different from collision? AUTOMOBILE INSURANCE ( DE%20TO%20AUTOMOBILE%20INSURANCE_CAU1.PDF) DE%20TO%20AUTOMOBILE%20INSURANCE_CAU1.PDF BB30 Business Law 4.02Summer 2013

AUTOMOBILE INSURANCE COVERAGE BB30 Business Law 4.02Summer 2013 Medical Payment Coverage(Med Pay) What is medical Payment Coverage? Whom does this coverage pay for in the case of a covered accident? Uninsured Motorist Coverage What is uninsured motorist coverage? What are two types of losses that this type of coverage will cover? Underinsured Motorist Coverage What is underinsured motorist coverage? Is this coverage mandatory in North Carolina? Miscellaneous Coverage-Towing, Rental Vehicle, Custom Coverage Are these types of coverage mandatory for automobile insurance? What does towing coverage provide? What does rental coverage provide? What does custom insurance provide?

MOTORCYCLE INSURANCE BB30 Business Law 4.02Summer 2013 Liability, Collision, Uninsured/Underinsured and Towing Coverage is identical to a regular automobile policy. It is important to have a special coverage for a customized motorcycle. Traditional motorcycle coverage will only cover the “stock value” not any customizations are added equipment.

BOAT INSURANCE Items that may or may not be considered "permanently attached" under a policy include: Anchors Batteries Bilge pumps Boat furniture Boat and motor covers Cook stoves Deck chairs Depth finders Detachable canopies Emergency signaling devices Fire extinguishers Fittings Fuel tanks Horns Life preservers Lights Pleasure boat policies or endorsements often state that coverage includes "the boat and all permanently attached equipment". The policy may then list items that are not permanently attached, but are covered as either part of the boat's value, or as a separate limit of insurance. BB30 Business Law 4.02Summer 2013

Homeowners Insurance What is homeowners insurance? Why is it necessary? Coverage for Property There are (4) basic coverage types within a homeowners policy: 1.Coverage A is for dwelling. What constitutes a dwelling? 2.Coverage B is for other structures. What are other structures? 3.Coverage C is Personal Property. What items might you find listed? 4.Coverage D is for loss of use. What is loss of use and what if anything does this coverage pay for? PROPERTY INSURANCE BB30 Business Law 4.02Summer 2013

Earth Movement What is earth movement? Water Damage What is water damage? Why do most homeowners policies not provide water damage coverage from flooding? Power Failure What constitutes power failure? Why don’t insurance policies provide coverage for this? Neglect What does neglect mean in regards to being a policy exclusion? Why is it an exclusion? HOMEOWNER’S EXCLUSIONS

Renters Insurance What is renters insurance? Whom should purchase renters insurance? Do roommates living in the same house, apartment, condo etc., need to each have their own renters insurance? Fire Insurance What hazards does fire insurance provide property coverage for. ADDITIONAL TYPES OF PROPERTY COVERAGE BB30 Business Law 4.02Summer 2013

HEALTH INSURANCE  Traditional Health Insurance (Major Medical Coverage)  Annual Deductible  Major Exclusions for Coverage  Group Insurance Coverage BB30 Business Law 4.02Summer 2013

MANAGED HEATH CARE  HMO (Health Maintenance Organization)  PPO (Preferred Provider Organization)  HMO-(POS)  Individual Insurance Coverage BB30 Business Law 4.02Summer 2013

SUPPLEMENTAL HEALTH INSURANCE  Cancer Insurance Coverage  Dental Insurance Coverage  Long Term Medical Coverage  Vision Insurance Coverage  Medigap Coverage  Disability Insurance Coverage BB30 Business Law 4.02Summer 2013

GOVERNMENT INSURANCE COVERAGE  Medicare  Medicaid  Medigap BB30 Business Law 4.02Summer 2013

LIFE INSURANCE: TYPES  Term Life  Increasing Term Life  Decreasing Term Life  Level Term Life  Permanent Life Insurance  Whole Life  Universal Life  Variable Life  Optional Riders  Accidental Death and Dismemberment BB30 Business Law 4.02Summer 2013

LIFE INSURANCE: PAY OUT  Who collects on a Life Insurance Plan?  Beneficiary  Contingent Beneficiary BB30 Business Law 4.02Summer 2013

LIFE INSURANCE: DETERMINING COST  Needs Approach  Human Life Value  Statistical Basis for Life Insurance  Mortality tables  Morbidity tables BB30 Business Law 4.02Summer 2013

INSURANCE FRAUD  Automobile Repair  Billing of Medical Services  Automobile Accident  Property Claims Adjusting Report any suspects of Fraud to the NC Department of Insurance and your local law enforcement agency! BB30 Business Law 4.02Summer 2013