1. Speaker’s Name Here… Date Here…
INSURANCE BASICS
Speaker’s Name Here…
Date Here… 1

2. Basic Concepts of Insurance
Insurance Defined
Risk Sharing
Contractual Agreement
Concept of Indemnity 2

3. Four Major Types of Insurance
Life Insurance
Health and Disability Insurance
Property Insurance
Direct, Indirect losses
Casualty Insurance
Liability
Auto, Workers Comp 3

4. Life Insurance Whole Life Term Life Straight Universal Permanent
Single-Year
Multi-Year 5

5. Cost Factors Contract Amount Type of Policy Probable Life Expectations
Whole or Term
Probable Life Expectations
Gender
Age
Medical History 6

6. Health and Disability Insurance
Types of Policies
Major Medical, Comprehensive
Types of Rating
Individual, Group
Health Insurance Options
HMO, PPO
Individual
Group 7

7. Cost Factors Group Experience Age, Gender Medical History Deductible
Co-Payment
Type of Policy 8

8. Property Insurance
Fire and Other Perils
Personal Liability 9

9. Why Should You Buy? Mortgage Requirements Financial Ruin
Damage to your home
Damage to your property and belongings
Liability suits due to negligence 10

10. Perils Protected Against
Fire, Lightning, Smoke, Explosion
Windstorm, Hail, Weight of Ice
Riot, Civil Commotion
Aircraft, Vehicles, Falling Objects
Theft, Vandalism, Malicious Mischief
Accidental Overflow of Water, Plumbing Freezes 11

11. Usually Not Covered Flood Earth Movement
Earthquake
Landslide
Mudflow
Intentional Loss by or at the direction of an insured 12

12. Cost Factors Policy Limits Location Protection Type of Construction
Loss History
Policy Credits 13

13. Auto Insurance Definition History of Automobile Insurance
Financial Responsibility
State Regulation 14

14. Why Should You Buy? It’s the Law Lienholder Requirements
Financial Ruin
Property damage
Physical damage
Medical costs 15

15. What If I Don’t? Rebuilding a Car Loss of Use Medical Costs
A new Ford Taurus costs about $28,000
If the same car was totaled in an accident, it would cost about $75,000 to rebuild it using replacement parts
Loss of Use
Medical Costs
At least $2,500 per day 16

16. Primary Types of Coverage
Liability
Personal Injury Protection
Collision
Comprehensive
Uninsured Motorists
Other Options 17

17. Cost Factors Age Sex Marital Status Amount You Drive Where You Drive
What You Drive
Accident and Ticket Record 18

18. Ways to Save Clean Driving Record Driver’s Training Course
Good Student Discount
Limits/Deductibles
Type of Car
Shop Your Company! 19

19. Insurance Grouping
In 2008, motor vehicle crashes were the leading cause of death for 15 to 20 year olds
Teen drivers were involved in 19% of all motor vehicle accidents
Teens were involved in 13% of all fatal accidents
The risk of being involved in a fatal crash for teens is three times greater than for drivers age 65 to 69
Source: National Safety Council 4

20. Are You a Safe Driver?
A survey conducted in spring 2008 found that although the majority of teens (91%) believe they are driving safely, only about a third (34%) think their friends are good drivers
97% said they had seen other teens engaging in risky behaviors such as speeding and not wearing seatbelts while driving
76% talk on cell phones while driving, 57% read or send text messages, 92% play loud music and 48% say they are easily distracted when friends are passengers

21. Over 350 different careers!
Careers in Insurance
Over 350 different careers! 20

22. Find out more at… www.investprogram.org
Students form and operate model insurance agencies and an insurance company home office in the classroom
Annually prepares high school and community college students for insurance careers
Teaches marketable business skills
Find out more at… 21