1. Insurance and How It Works
CHAPTER 23
7/3/2018
LESSON 23-1
Insurance and How It Works
Discuss the common types of insurance
Identify when an insurable interest is present

2. WHAT IS INSURANCE?
Insurance is a contractual arrangement that protects against loss.

3. INSURANCE TERMS Indemnify Insurer Insured Beneficiary Policy
Face value
Risk

4. COMMON TYPES OF INSURANCE
Life insurance
Fire insurance
Casualty insurance
Social insurance
Marine insurance
Inland marine insurance
Fidelity and surety bonding insurance

5. LIFE INSURANCE Term insurance Whole life insurance
Endowment life insurance

6. CASUALTY INSURANCE Burglary, robbery, theft, and larceny insurance
Automobile insurance
Liability insurance
Disability, accident, or health insurance

7. INSURABLE INTEREST Insurable interests in property
Insurable interests in life

8. Property and Casualty Insurance Coverage
LESSON 23-2
Property and Casualty Insurance Coverage
Know the types of coverage provided by property and casualty insurance
Understand the coverages provided in an automobile insurance policy

9. PROPERTY AND CASUALTY INSURANCE
Fire insurance
Inland marine insurance
Liability insurance

10. AUTOMOBILE INSURANCE Medical payments coverage
Collision and comprehensive coverage
Uninsured and underinsured coverage
No-fault insurance

11. Life and Social Insurance Coverage
LESSON 23-3
Life and Social Insurance Coverage
Identify common provisions in life insurance contracts
Explain the types of social insurance

12. LIFE INSURANCE
Life insurance is a contractual arrangement under which an insurer promises to pay an agreed-upon amount of money to a named party upon the death of a particular person

13. COMMON PROVISIONS OF LIFE INSURANCE
Exemption from liability in case of the insured’s death during military service.
Incontestability clause prohibits the insurer from refusing to perform due to misrepresentation or fraud after the policy has been in place for a specified period of time.
Indemnity coverage requires the insurer to pay more than the face value of the policy if the death of the insured is accidental.
Disability coverage provides for protection against the effects of total permanent disability.

14. SOCIAL INSURANCE Retirement insurance Survivor’s insurance
Disability insurance
Health insurance