1. Insurance
Econ 10/23

2. 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?

3. 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

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

5. 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!

6. 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

7. 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.

8. 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.

9. 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