DOC PREVIEW
UA CSM 204 - Chapter 10
Type Lecture Note
Pages 9

This preview shows page 1-2-3 out of 9 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 9 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 9 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 9 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 9 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

CSM 204 Chapter 10 LectureOutline of Previous LectureI. Types of Real Estate InvestmentsII. Homes as InvestmentsIII. Advantages of Real Estate InvestmentsIV. Disadvantages of Real Estate InvestmentsV. Investing in Precious Metals, Gems and CollectiblesVI. Quiz 3-5Outline of Current LectureI. What is insurance?II. Insurance TermsIII. Planning an Insurance ProgramIV. Property and Liability InsuranceV. Home and Property InsuranceVI. Homeowner’s CoverageVII. Factors Affecting Home Insurance CostsVIII. Automobile Insurance CoverageIX. Amount of CoverageX. Automobile Insurance Premium FactorsXI. Reducing Automobile Insurance CostsXII. Quiz 4-1Current LectureChapter 10 – Property and Motor Vehicle InsuranceWhat is insurance?Protection against possible financial lossRisk sharingInsurance company groups people into risk poolsInsurance TermsInsurerThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.The insurance companyInsuredThe person or thing the insurance is protectingPremiumThe amount of money you pay for insuranceRiskTypes of RiskSpeculative RiskChance of gain or lossUninsurablePure RiskOnly chance of lossAccidental or unintentionalCan be predictable in naturePerilWhat you are insuring againstThe bad thing that can happenExample – Car InsuranceAccidentsVandalismExample – Home InsuranceFireBurglaryExample – Health InsuranceDiseaseInjuriesExample – Life InsuranceDeathHazardAnything that could happen that makes peril more likely to occurRisk ManagementRisk AvoidanceThings that can be avoidedTaking public transportation instead of driving a carRisk ReductionKeeps insurance costs lowerGetting rid of hazards and getting rid of things that cause perilsExample – CarHaving a navigator in your carWearing you seat beltAbiding by the speed limitExample – HomeFire extinguishersHaving dead boltsHaving fire alarmsExample – HealthExercising regularlyGetting regular health checkupsNot participating in things that are dangerous to your lifeRisk AssumptionMaking the conscious decision to assume the riskRisk can be assumed by accident, such as when someone fails to buy insurance by simply forgetting to purchase itRisk ShiftingShift the burden off of us and onto other people by buying insurancePlanning an Insurance ProgramSet insurance goalsDevelop a plan to reach goalImplement planMeaning buy the insuranceReview results and amend plan if necessaryProperty and Liability InsurancePotential property lossesHome, personal belongings, automobiles, etc.Physical damageLoss of useLiability protection – legal responsibility for the cost of another person’s lossesNegligenceIf you are guilty of negligence, your insurance will not payPrudent Man RuleWould a prudent person do the same thing?Vicarious liabilityLiable for the acts the cause damage that are done by someone elseParents that are vicariously liable for the acts of their childrenCompanies that are vicariously liable for the acts of its employeesHome and Property InsuranceHome Owner’s InsuranceHouse and other structuresAdditional living expensesPersonal propertyPersonal property floaterHousehold inventoryPersonal Liability CoverageMedical paymentsIf someone is injured on your propertyPersonal liabilityIf someone’s stuff gets damaged on your propertyEndorsementsAdd extra coverage for itemsUmbrella PolicyAdditional policy that is just liability insuranceIf someone dies on your property regular policies are not going to be enoughRenter’s InsuranceNote: As long as you are dependent, your parent’s have homeowner’s insurance, and you have less than a certain dollar amount in your place of rent, you are already coveredPersonal property loss or damageAdditional living expensesPersonal liabilityMany renters have no insuranceBuilding owner’s policy will not cover personal propertyHomeowner’s CoverageMany forms – want full coveragePerils not usually covered – need special coverageFloodNatural rising waterOnly sold by the governmentEarthquakeCost varies by how close you live to places with reoccurring earthquakesWarNot availableNuclear accidentsNot availableAlso coversCheck card fraud, forgery and counterfeit moneyCost of removing damaged propertyTemporary repairsFire department chargesWant replacement costFactors Affecting Home Insurance CostsLocation of homeType of structureCoverage amount and policy typeReducing Home Insurance CostsGet all discounts you qualify forCompare companies – www.insure.comBe sure customers are satisfied with the company – www.consumerproducts.orgAutomobile Insurance CoverageFinancial responsibility lawsNo Fault InsuranceBodily injury coverageBodily injury liabilityPrimarily to people in the other vehicle if you caused the wreckMedical paymentsPrimarily to people (including yourself) in your car if you caused the wreckUninsured/underinsured motorist protectionCovers you if you are involved in an accident you did not cause if the other person is uninsured or underinsuredProperty Damage CoverageProperty damage liabilityCollisionHitting another vehicleNon-moving itemRolling your carComprehensiveAmount of Coverage100/300/50Indicates $100,000 limit that will be paid to one person in an accidentBodily Injury LiabilityIndicates $300,000 limit that will be paid to all persons in an accidentBodily Injury LiabilityIndicates $50,000 limit for payment for damage of property of othersProperty Damage LiabilityAutomobile Insurance Premium FactorsAutomobile typeRating territoryDriver classificationReducing Automobile Insurance CostsComparison shopHave larger deductiblesGet discounts you qualify forGood driving recordNon-smokerCar alarmMultiple vehiclesQuiz 4-11. Hazard2. Risk Reduction3. Vicarious Liability4. True5. Personal


View Full Document
Download Chapter 10
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Chapter 10 and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Chapter 10 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?