Insurance Econ 10/23

Warm Up What is your experience with insurance? Have you or one of your family members been sick, gotten in a car accident, had a disaster affect your home? Did you have insurance? How did it help?

What’s the Average Cost? Repair torn ACL, $40,000-$65,000 Fill small cavity, $75-$4,000 + exam fee Ambulance Ride, $400-$1,200 + mileage Replace a home water heater, $800-$3,000 Replace typical windshield, $185-$1000 Claim for property damage due to vandalism, $4,500

Different Types of Specialized Insurance Auto Dental Disability Fidelity Bond Health Homeowners’ Liability Life Renters’ Unemployment Vision Workers’ Compensation

Ways to Manage Risk Avoid it: When possible do not engage in risky activities where you may hurt yourself or others Reduce it: Know and take safety precautions Accept it: Accept that some activities are risky and plan ahead for them Share it: Pool financial resources to cover costs, aka get insurance!

Unintentional and Unexpected Reasonable cost Estimable Insurable Qualities The risk must have certain qualities to be insurable. Insurable interest Numerous Specific loss Unintentional and Unexpected Reasonable cost Estimable

Getting Covered You submit an application for insurance coverage. If approved, the insurance company sets specific coverage limits and conditions You make regular premium payments on time to keep coverage.

You file a claim form to describe the details of the qualifying event. Covering a Loss You file a claim form to describe the details of the qualifying event. An insurance claims adjuster will investigate to determine if the claim is payable. If the claim is approved, the insurance company will settle the claim with a check.

Legality of Insurance Provide accurate information Be honest Take Responsibility Know Rights Provide accurate information Be honest Know procedures Pay premiums on time Keep own records in order for quick retrieval Know details upfront Receive notice of any policy or premium changes Expect fair and prompt processing of claims Receive explanation of why claim is denied Expect that personal information is securely protected