Insurance Flashcards
Companies that can partially self insure w/ stop-loss coverage
under 100 employee companies
elements of insurable risk
fortuitous and accidental loss
Transfer of risk
high severity, low frequency of loss
avoidance of risk
high severity, high frequency of loss
reduction of risk
low severity, high frequency of loss
retention of risk
low severity, low frequency of loss
Tort
wrongful act for which civil action can be brought against someone for
attractive nuisance
high degree of care imposed on occupier of land for certain conditions
capital retention calc
yearly income needs/inflation + yearly income needs
absolute liability
extra hazardous conditions
ex: workers’ comp.
tax deductible ER paid premiums/costs
Bus. owner’s insurance
workers’ comp
Fed. unemp. tax
director/officer liab. insurance
COBRA
MUST elect for companies with 20+ EEs
18 months: voluntary/involuntary changes
36 months: eligibility for Medicare, death, divorce, loss of dep. status
Formula method for insurance coverage for losses
rep. cost x coinsurance= insurance needed
insurance/insurance needed x loss -ded.
Is Alzheimer’s covered by medicare
no
dividend options
reduction of premium
accumulate with interest
purchase paid up additions
one year term/5th dividend
nonforfeiture options
reduced paid up
paid up term
