Module 8 Flashcards

1
Q

Disability Insurance

A

Protects against the risk of a serious illness or accident that would render the insured incapable of self care or of full employment. Important because over 50% of disabilities over a year. Should be 60 to 80% of gross income

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2
Q

Critical illness insurance

A

Either pays a lump sum or provides income if diagnossed with a critical illness. The policy will pay out even if you subsequently make a full recovery and you have full discertion over how to use the money

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3
Q

Long term care insurance

A

th insured pays a lump sum or continuing premium and the insurance pays all or some of the cost of long term care. They are 3 types of long term care insurance

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4
Q

3 types of long term care insurance plan

A

1) Income plan
2) Reimbursement
3) Indemnity plan

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5
Q

Income plan (long term care insurance)

A

Predetermined weekly benefit which you are free to use for whatever long term care service you wish

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6
Q

Rembursement (long term care insurance)

A

Must submit proof that you received care covered under the plan

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7
Q

Indemnity Plan (Long term care insurance)

A

Receives a predetermined daily benefit if you can prove you received covered service

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8
Q

Property insurance

A

Insures physical property against damage theft or destruction

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9
Q

Home insurance

A

Protects the family against the risk of loss, damage or destruction of the home, its related out buildings and its content. It also coveres liability to a third party for injury suffered on the property. There is no standard insurance policy

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10
Q

What are the 2 types of valuation of home content (insurance)

A
  • Depreciated Value

- Replacement Value

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11
Q

Depreciated Value ( home valuation)

A

The item is valued at replacement or repare of the item in the condition it was when it was lost or damaged

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12
Q

Replacement Value (Home valuation)

A

The cost of buying a new item of the same quality. If the insured wishes not to replace at depreciated value only

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13
Q

Replacement value of the home

A

It is the home structure which is everythins except land and fondations. Some insurance company set the amount of the mortgage = the home insurance

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14
Q

80% rule ( home insurance)

A

Most insurance will not cover full loss on partial damage unless the insured has bought anough insurance to cover at least 80% of the home’s replacement value

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15
Q

Infaltion protection provision (home insurance)

A

Automaticaly increase the coverage each year in accordance to an inflation index

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16
Q

Deductible

A

Portion of the claim that must be paid by the insured. The higher the deductible the lower the premium. Also waiting period in a disability insurance

17
Q

What are the 3 types of risk an automobil insurance coveres for?

A

1) Injury or death to the owner and pasangers
2) Damage, destruction or theft of the veicule
3) 3rd party liability for injury, death or damage to property

18
Q

8 Types of Auto insurance

A
  • Liability Insurance
  • Collision coverage
  • Comprehensive Coverage
  • Medical Payment Coverage
  • Uninsured Motorist Coverage
  • No fault Insurance
  • Loss of Use
  • Rental Car insurance
19
Q

Liability Insurance (auto)

A

Covers injury death or damage to the property of other persons

20
Q

What are the 2 types of liability insurance (Auto)

A
  • Bodily injury Coverage

- Property Damage Coverage

21
Q

Bodily Insurance Coverage (Auto/liability insurance)

A

Covers owners and persons using the car with the owner’s permision for injury or death of other people

22
Q

Property Damage Coverage(Auto/Liability)

A

Covers damage your car causes to someone else’s property if you are at fault

23
Q

Colision Coverage (auto)

A

Pays only the depreciated value of the car if you are at fault

24
Q

Comprehensive Coverage (Auto)

A

Pays the depreciated value of the car for damages resulting from non accidents

25
Q

Medical payment coverage (auto)

A

Pays the medical cost for the owner and pasangers if you are at fault

26
Q

Uninsured Motorist coverage (auto)

A

Covers owner + family for injuries caused by drivers with no insurance

27
Q

No-fault Insurance (Auto)

A

Allows you to collect insurence from your insurance company even if the accident is someone else’s fault

28
Q

Loss of Use insurance (Auto)

A

Provides you with a rental car in the event of an at fault accident

29
Q

Rental car insurance

A

Covers primary risks you would normaly face on a rental vehicle

30
Q

Waiting period or elimination period (disability insurance)

A

The period from the start of the disability to the time when the benefits begin under the policy. The shorter the period the higher the premium