Student Basics

425 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
425
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • Student Basics

    1. 1. INSURANCE BASICS What You Don’t Know CAN Hurt You
    2. 2. Basic Concepts of Insurance <ul><li>Insurance Defined </li></ul><ul><li>Risk Sharing </li></ul><ul><li>Contractual Agreement </li></ul><ul><li>Concept of Indemnity </li></ul>
    3. 3. Four Major Types of Insurance <ul><li>Life Insurance </li></ul><ul><li>Health and Disability Insurance </li></ul><ul><li>Property Insurance </li></ul><ul><ul><li>Direct, Indirect losses </li></ul></ul><ul><li>Casualty Insurance </li></ul><ul><ul><li>Liability </li></ul></ul><ul><ul><li>Auto, Workers Comp </li></ul></ul>
    4. 4. Insurance Grouping <ul><li>In 2003 individuals under the age of 20 represented 4.8% of the drivers involved in accidents. </li></ul><ul><li>Teen drivers were involved in 22% of all motor vehicle accidents. </li></ul><ul><li>Teens were involved in 17.0% of all fatal accidents. </li></ul>*Source: National Safety Council This information is located on the Insurance Information Institute website at www.iii.org
    5. 5. Life Insurance <ul><li>Whole Life </li></ul><ul><ul><li>Straight </li></ul></ul><ul><ul><li>Universal </li></ul></ul><ul><ul><li>Permanent </li></ul></ul><ul><li>Term Life </li></ul><ul><ul><li>Single Year </li></ul></ul><ul><ul><li>Multi-Year </li></ul></ul>
    6. 6. Cost Factors <ul><li>Contract Amount </li></ul><ul><li>Type of Policy </li></ul><ul><ul><li>Whole, Term </li></ul></ul><ul><li>Probable Life Expectations </li></ul><ul><ul><li>Gender </li></ul></ul><ul><ul><li>Age </li></ul></ul><ul><ul><li>Medical History </li></ul></ul>
    7. 7. Health and Disability Insurance <ul><li>Types of Policies </li></ul><ul><ul><li>Major Medical, Comprehensive </li></ul></ul><ul><li>Types of Rating </li></ul><ul><ul><li>Individual, Group </li></ul></ul><ul><li>Health Insurance Options </li></ul><ul><ul><li>HMO, PPO </li></ul></ul><ul><ul><li>Individual </li></ul></ul><ul><ul><li>Group </li></ul></ul>
    8. 8. Cost Factors <ul><li>Group Experience </li></ul><ul><li>Age, Gender </li></ul><ul><li>Medical History </li></ul><ul><li>Deductible </li></ul><ul><li>Co-Payment </li></ul><ul><li>Type of Policy </li></ul>
    9. 9. Property Insurance <ul><li>Fire and Other Perils </li></ul><ul><li>Personal Liability </li></ul>
    10. 10. Why Should You Buy? <ul><li>Mortgage Requirements </li></ul><ul><li>Financial Ruin </li></ul><ul><ul><li>Damage to your home </li></ul></ul><ul><ul><li>Damage to your property and belongings </li></ul></ul><ul><ul><li>Liability suits due to negligence </li></ul></ul>
    11. 11. Perils Protected Against <ul><li>Fire, Lightning, Smoke, Explosion </li></ul><ul><li>Windstorm, Hail, Weight of Ice </li></ul><ul><li>Riot, Civil Commotion </li></ul><ul><li>Aircraft, Vehicles, Falling Objects </li></ul><ul><li>Theft, Vandalism, Malicious Mischief </li></ul><ul><li>Accidental Overflow of Water, Freezing </li></ul><ul><li>of Plumbing </li></ul>
    12. 12. Usually Not Covered <ul><li>Flood </li></ul><ul><li>Earth Movement </li></ul><ul><ul><li>Earthquake </li></ul></ul><ul><ul><li>Landslide </li></ul></ul><ul><ul><li>Mudflow </li></ul></ul><ul><li>Intentional Loss by or at the direction </li></ul><ul><li>of an insured </li></ul>
    13. 13. Cost Factors <ul><li>Policy Limits </li></ul><ul><li>Location </li></ul><ul><li>Protection </li></ul><ul><li>Type of Construction </li></ul><ul><li>Loss History </li></ul><ul><li>Policy Credits </li></ul>
    14. 14. Automobile Insurance <ul><li>Definition </li></ul><ul><li>History of Automobile Insurance </li></ul><ul><li>Financial Responsibility </li></ul><ul><li>State Regulation </li></ul>
    15. 15. Why Should You Buy? <ul><li>It’s the Law </li></ul><ul><li>Lienholder Requirements </li></ul><ul><li>Financial Ruin </li></ul><ul><ul><li>Property damage </li></ul></ul><ul><ul><li>Physical damage </li></ul></ul><ul><ul><li>Medical costs </li></ul></ul>
    16. 16. What If I Don’t? <ul><li>Rebuilding a Car </li></ul><ul><ul><li>A new Ford Taurus costs about $21,000. </li></ul></ul><ul><ul><li>If the same car was totaled in an accident it would cost about $75,000 to rebuild it using replacement parts. </li></ul></ul><ul><li>Loss of Use </li></ul><ul><li>Medical Costs </li></ul><ul><ul><li>At least $2,300 per day </li></ul></ul>
    17. 17. Primary Types of Coverage <ul><li>Liability </li></ul><ul><li>Personal Injury Protection </li></ul><ul><li>Collision </li></ul><ul><li>Comprehensive </li></ul><ul><li>Uninsured Motorists </li></ul><ul><li>Other Options </li></ul>
    18. 18. Cost Factors <ul><li>Age </li></ul><ul><li>Sex </li></ul><ul><li>Marital Status </li></ul><ul><li>Amount You Drive </li></ul><ul><li>Where You Drive </li></ul><ul><li>What You Drive </li></ul><ul><li>Accident and Ticket Record </li></ul>
    19. 19. Ways to Save <ul><li>Clean Driving Record </li></ul><ul><li>Driver’s Training Course </li></ul><ul><li>Good Student Discount </li></ul><ul><li>Limits/Deductibles </li></ul><ul><li>Type of Car </li></ul><ul><li>Shop Your Company! </li></ul>
    20. 20. Careers in Insurance <ul><li>Marketing Agents </li></ul><ul><li>Underwriters, Actuaries </li></ul><ul><li>Customer Service Reps </li></ul><ul><li>Insurance Attorneys </li></ul><ul><li>Insurance Adjusters </li></ul><ul><li>Insurance Educators </li></ul><ul><li>…and more - over 350 different careers! </li></ul>
    21. 21. InVEST <ul><li>Students form and operate model </li></ul><ul><li>insurance agencies and an insurance </li></ul><ul><li>company home office in the classroom </li></ul><ul><li>Annually prepares more than 6,000 high </li></ul><ul><li>school and community college students </li></ul><ul><li>for insurance careers </li></ul><ul><li>Teaches marketable business skills </li></ul>
    22. 22. Want to Know More? <ul><li>Visit www.InVESTprogram.org </li></ul><ul><li>Contact the InVEST Program Manager </li></ul><ul><li>at (800) 221-7917 or sandra.skipper@iiaba.net </li></ul>

    ×