Test 2 Flashcards
Identify anexample of three risk management principles
Avoidance and risk = minimize
Assume =maintain
Paying a deductible on car insurance
Shift = buying insurance
What does home owners insurance cover?
Lost from fire/lightning Dwelling Loss of use Personal liability Personal possession Medical payments
What is covered under renters insurance?
Personal property additional living expense and personal liability
What is the relationship between premium and single versus multi car insurance use a vehicle type of vehicle risk to insurance company?
Driving record risk
Type of car
Engine size
Case study: Who pays under which coverage?
Whoever is at fault Pays
After $5000 you can file a claim either for your insurance or other persons insurance
Collision - damage to the car
Comprehensive- acts of God
In the US we spend more per person on medical expenditures there any other country in the world
True
Factors that underline rising healthcare costs
Hi tech services and sophisticated drugs
Labor-intensive and high salaries for healthcare professionals
Duplicate and services that waste of time and money
Longer lifespan
Hi health insurance admin cost
Characteristics of the Hawaii prepared healthcare act
Health insurance is required
Under the law, businesses are required to offer help insurance to employees work more than 20 hours per week
Identify health insurance choices on limited income
Medicaid/Obamacare
Characteristics of disability income
Has to be currently insured
Cannot be able to do any meaningful work
Identify the characteristics of Medicare versus Medicaid
MediCare is for older people
Medicare will before younger people
McCourty and maintaining economic self-sufficiency in retirement
Cost-of-living goes up makes it harder since you’re not working
Retirement income
Social Security, savings, IRA, 401(k), savings
What is vesting
Nonforfeitable right to receive benefits at retirement
Fully vested
Nonforfeitable right to retirement benefits after 5-7 yearsretirement
