COA 4131 1st Edition Lecture 17 Outline of Last Lecture I. For Sale: A Mistress & a SheepII. Why Insure Art?III. Insurance IV. Types of Coverage V. Terms VI. Coverage Considerations VII. How Much Coverage Do You NeedVIII. CostIX. Insurance for artistsX. When Art is StolenXI. Art PricesXII. Preventative Conservation and Risk ManagementXIII. CompaniesXIV. Property and Liability InsuranceXV. Liability and Auto Insurance Outline of Current Lecture I. Liability and Auto Insurance II. Costs of Auto Insurance III. Health Care Costs IV. Health Care Coverage V. Providers: Three Main ChoicesVI. Long-term Care Insurance Current LectureA. Liability and Auto Insurancea. Personal Auto Policy (PAP)i. Liability coverage1. Injury to a person in the accident 2. This is number one3. Single limit a. Different ways to figure it 4. Split amount a. $200,000 on liability and $300,000 on medicalb. Divided into categories for the maximum instead of one single lumpii. Everyone is likely to get in at least one accident in their lifeb. Medical Payment Coveragei. Covers medical expenses for people injured in one’s car 1. Pay a part of it c. Uninsured and underinsured motorists coverage i. Coverage for the cost of injuries to a person/member’s of his/her family caused by a driver with inadequate insurance or hit-and-run driver1. Person(s) in the other car 2. Rear ending is the most common type of accident 3. Some states allows cars to not be insureda. In Florida, you HAVE to be insuredi. That’s better and safer for us d. Physical Damage Coveragei. Collision1. Pays for damage to the insured’s car when involved in an accidentii. Comprehensive1. Covers you for risks such as fire, theft, glass breakage, falling objects, vandalism, wind, hail, flood, ecte. Exclusions, deductibles and other provisions of PAPi. Deductibles: the amount the insurance will pay up to, before you pay out of pocket ii. Inclusions1. If you have an old clunker you probably won’t want collision coverage because if it gets hit, you will just drive around with the dent or get a new one2. Want collision coverage for new, nice cars that you want to keep and protect f. Accidentsi. Filing a claimii. Autos and the lawiii. No-fault insurance 1. Florida tried this, it didn’t work outa. Sounds better than it actually is 2. Florida is now a no-fault state 3. You have to have your own insurance 4. Half of the states have no-fault a. Don’t have to claim who hit whoB. Costs of Auto Insurancea. Insurer factorsi. Territoryii. Age, sex and marital statusiii. Use of Autoiv. Driving Recordv. Number of cars insuredvi. Good student discountvii. Year, make, and model of autob. Lowering Auto Insurancei. Compare companiesii. Maintain safe driving recordiii. Avoid accidents/traffic violations iv. If two people get hit and it’s not serious, many times people will not file a claim so then insurance won’t increase c. If in an accidenti. Stop car in a safe spot (if possible)1. Don’t want people to hit you 2. Do not pick up debris or anything, let the police see for evidence ii. See if anyone is hurtiii. Call police or high way patrol immediately iv. Emergency authorities will help you 1. If hurt, want to definitely be checked out v. Get contact info of other vehicle(s) and witnesses (if any) d. Attorney’s i. Accident auto attorney’sii. See them on the phone books, radio ads, commercials on TViii. Contingency 1. Don’t have to pay them 2. Will get 10% (or whatever the percent they choose) of the money you get from the accident iv. People purposefully get in accidents to get this money from lawyer and scam 1. If caught will get in big trouble from authorities e. Lower rate of auto insurance when you graduate college C. Health Care Costsa. Right now for full time workers i. Trying to get for part time workers but not yet a. Changes in who pays i. 19701. A lot of people would go to doctor and pay cash to the doctor ii. 19931. Far fewer people paying out of pocket and in cash2. More people relying on the government b. Rising costsi. Advances in medical technology and care1. Affects babies and elder care ii. Decline in lengthy hospital stays/Outpatient services1. In and out 2. Birth of babya. Will only cover 24 hour stays iii. Demographicsiv. Increases in 3rd party paymentsv. Rising costs in labor, prescriptions, supplies, and administration 1. PA’s, physical therapists, supplies just going up and up not the other way B. Health Care Coverage a. Children, health plans, and insurancei. A lot of children in this country are not covered by insurance or government1. Certain diseases are not covered either ii. Parents are not taking their sick children to doctor’s and this is not goodb. Healthcare plans or insurance; marriage and divorcei. Who has the better plan and become spouse on the better oneii. After divorce, decide what is going to happen1. Example: woman getting divorced after 33 years marriage; has not worked in 20 years (raising kids); has to be careful in her divorce settlement for insurance; she has no retirement funds or anything so she needs his insurancec. Financial pains of childbirth i. Very expensiveii. Want health insurance during pregnancy and after iii. Want insurance and the care providers you want C. Providers: Three Main Choices a. Private Group health insurancei. Get a better rate ii. Includes managed care1. Health Maintenance Organization (HMO)a. Most common, probably the ones our parents haveb. Been around since 1930’si. First one was Keiser Permanente in California c. Blue Cross Blue Shield i. This one is excellent d. Fixed monthly feee. Employers pay part of itf. Given a list of doctors who are under your plan and you can pick which ones you go to and they suggest withini. You have primary care physician and they will suggest specialist ii. People pick mostly by specialist or by location g. Proi. Take care of preventative care, as well as when youare sick and injured h. See them once a year for checkups and other things and itis coveredi. Some people do not like HMOs and their insurance company because they could have had a bad experience 2. Preferred Provider Organizations (PPOs)a. Smaller listb. More specialistc. Sometimes cost more d. You might pick this instead if there is someone on the list you want and specialization e. People are particular about obstetricians 3. Point of Service Organizations (POSs)a. More rare choice b. Traditional coverage, plus a HMO listc. List of providers and who you want d. Doctors
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