Enterprise: Management Job: Using Insurance to reduce risk Objective: Learn what insurance is and ho

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Enterprise ManagementJob Using Insurance to
reduce riskObjective Learn what insurance is
and how to decide what insurance you need.

• 1. What is insurance and why is it important to
  you?
• 2. What are the two reasons to buy life
  insurance?
• 3. Explain the difference between term, straight,
  limited payment and endowment life insurance
• What are the functions of Health insurance?

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• 5. List the four areas that health insurance
  covers
• 6. What does property insurance cover?
• 7. Who administers crop insurance and what does
  it cover?
• 8. List and explain the types of auto insurance

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• 9. What factors are used to determine the price
  of auto insurance?
• 10. List and explain the two types of insurance
  companies.
• 11. Who else can we get insurance from?
• 12. What are the two importance criteria in
  determining if comprehensive personal liability
  insurance is needed?

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• 13. Under workman's compensation, What benefits
  are the employees eligible for?

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• 1. Insurance is a method of managing risk and
  uncertainty.
• 2. The first reason to buy insurance is to
  provide protection against the loss of income due
  to the premature death of the breadwinner, and
  the second reason is to provide a means of
  savings and investment.

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• 3. Term is the purest form of insurance you pay
  for the insurance and as long as you are paying
  you have insurance.
• Straight life - (whole) insurer pays a fixed
  price for insurance usually higher at first than
  term but does provide some savings
• limited payment- similar to straight yet payments
  are higher and then the interest

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• Earned on the premiums kicks in and starts paying
  the premiums. There is even more savings.
• Endowment - this is a policy in which when you
  finish paying over a number of years you can cash
  the policy in for the face value. Costs the most.

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• 4. The functions of health insurance are
• a. protect against the financial hardship due to
  illness or injury
• b. covers cost of medical care to insure
  competent treatment
• c. protects creditors by insuring policy holders
  ability to repay debt

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• 5. The four areas of health insurance are
• a. hospital expense- covers hospital room and
  board.
• B. surgical expense- this pays for all or part of
  surgical fees
• c. regular- this policy pays for doctors visits.
• D. Major medical- this provides coverage for
  large medical expenses.

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• 6. Property insurance insures against loss due
  to fire, hail and wind storms. Can then get
  extra coverage for riots civil commotion,
  vehicles, and smoke.
• 7. A special division of the USDA administers
  crop insurance. This insurance covers crop loss
  regardless of cause and will also cover decreased
  quality. Management tool that farmers need to
  consider.

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• 8. The types of auto insurance are
• A. Liability- this insurance pays for bodily
  injury and damage to others when insurer is
  responsible ( )
• b. medical payment- pays of insured and
  passengers medical fees regardless of blame.
• C. uninsured motorist- covers insured, spouse and
  children is struck by uninsured

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• D. collision- pays damage to insureds care if it
  hits another vehicle or object.
• E. comprehensive - covers loss caused by fire
  wind, theft, vandalism, collision with animal,
  etc.
• F. add- pays a lump sum for death in car
  accident also pays lump sum for loss of limb,
  blindness, and such.

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• 9. Insurance companies use the following factors
  to figure premiums
• a. Age
• b. location of vehicle
• c. protection desired
• d. accident history
• e. use of vehicle

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• 10. The two types of insurance companies are
• a. Stock - protects customer and stockholders
  profit
• b. Mutual - policy holders are the owners can
  profit, but might also have to pay extra if
  losing money.

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• 11. You can also get insurance from ag.
  Organizations. ( ),
  and the government (
  ).
• 12. The two major factors to determine this is
  the of employees and the type of work.

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• 13. Under workman's compensation the employee is
  eligible for medical expenses, hospital service,
  and pay to the employee. This insurance will pay
  up to 401 weeks and provide spouse with payment
  for life if death occurs. This insurance is not
  mandatory