Insurance Jeopardy

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Insurance Jeopardy

• Joan Koonce, Ph.D., AFC
• Extension Financial Planning Specialist

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Terminology Concepts
Health Disability Insurance
Life Insurance
Property Liability Insurance
Other/ Supplemental Insurance
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This is the dollar amount you pay towards your
expenses before the insurance company pays their
portion.
Terminology Concepts - 100

• What is the deductible?

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This is the percent of your expenses you pay
after the deductible.
Terminology Concepts - 200

• What is coinsurance?

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Many insurance companies will not cover these
until after a waiting period has expired.
Terminology Concepts - 300

• What are pre-existing conditions?

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This provision in an insurance policy puts a
limit on the total amount you will pay out of
pocket for your loss.
Terminology Concepts - 400

• What is a coinsurance cap or stop-loss provision?

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This provision in an insurance contract prevents
you from being reimbursed for more than 100
percent of your loss.
Terminology Concepts - 500

• What is a coordination of benefits clause?

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You use this type of account to pay for medical
expenses with pre-tax dollars.
Health Disability - 100

• What is a flexible spending account?

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This is the most liberal definition of disability
found in disability income insurance contracts.
Health Disability - 200

• What is own occupation?

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Long-term care insurance companies assess the
need for long-term care by using these as benefit
triggers.
Health Disability - 300

• What are Activities of Daily Living (ADLs)?

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This type of health insurance plan costs more but
provides you with the greatest choices of doctors.
Health Disability - 400

• What is fee-for-service or indemnity plan?

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These health care plans limit your choice of
doctors. Health Maintenance Organizations (HMOs)
and Preferred Provider Organizations (PPOs) are
in this category.
Health Disability - 500

• What are managed health care plans?

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Because it is temporary insurance protection and
has no savings component, it costs less than
other types of life insurance.
Life Insurance - 100

• What is term life insurance?

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Doing this will cause the death benefit of a life
insurance policy to be less than the original
face value when purchased.
Life Insurance - 200

• What is taking out a policy loan?

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Lump sum, interest only and life annuity are
examples.
Life Insurance - 300

• What are settlement options?

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This feature in a life insurance policy allows
you to exchange a term life insurance policy for
one that has a cash value.
Life Insurance - 400

• What is a convertibility feature?

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These two types of life insurance have a savings
component and allow you to choose your own
investments.
Life Insurance - 500

• What is variable life and variable-universal
  life?

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25/50/25
Property Liability - 100

• What is the minimum amount of automobile bodily
  injury/property damage liability coverage
  required in Georgia?

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This type of automobile insurance covers your
losses if you are hit by a hit-and-run driver.
Property Liability - 200

• What is uninsured/underinsured motorist coverage?

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When purchasing homeowners insurance to cover
your home, this is uninsurable.
Property Liability - 300

• What is land?

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You add these to your standard homeowners policy
to increase coverage on items that are
inadequately covered.
Property Liability - 400

• What are floaters?

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These two types of automobile insurance coverage
are required by lenders.
Property Liability - 500

• What is collision and comprehensive?

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Low-income, blind or elderly persons can obtain
health care through this program funded by the
state and federal government.
Other/Supplemental - 100

• What is Medicaid?

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This type of insurance only covers specific
illnesses or accidents.
Other/Supplemental - 200

• What is dread disease and accident insurance?

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It is a type of insurance that must be purchased
if you dont pay at least 20 percent down when
purchasing a home.
Other/Supplemental - 300

• What is private mortgage insurance?

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This coverage pays for the difference between the
vehicles value and what you may still owe on the
loan.
Other/Supplemental - 400

• What is gap insurance?

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People purchase these types of insurance to pay
off their mortgage in the event of their death
and make their mortgage payment if they become
disabled.
Other/Supplemental - 500

• What is credit (mortgage) life and credit
  (mortgage) disability income insurance?

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Insurance Terminology and Concepts

• Risk
• The uncertainty that you will incur a financial
  loss and the uncertainty regarding the size of
  the financial loss
• Pure Risk
• Speculative Risk

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Insurance Terminology and Concepts

• Ways to Manage Risk
• Avoid risk
• Example Dont drive
• Reduce risk
• Example Wear seat belts
• Retain or accept risk
• Example Pay all or a portion of the loss
• Transfer or share risk
• Example Purchase insurance

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Insurance Terminology and Concepts

• Premium
• Deductible
• Coinsurance
• Co-payment
• Coinsurance Cap or Stop-Loss Provision
• Pre-existing Conditions
• Waiting Period
• Policy Limits
• Policy Provisions
• Coordination-of-benefits Clause

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Insurance Terminology and Concepts

• Types of Insurance
• Health, Disability Income and Long-Term Care
  Insurance
• Life Insurance
• Property and Liability Insurance
• Automobile insurance
• Homeowners insurance
• Personal umbrella liability insurance

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Health Insurance

• Major Types of Health Care Coverage
• Basic health insurance
• Hospital insurance
• Surgical insurance
• Medical expense insurance
• Major medical insurance

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Health Care Plans

• Private Health Care Plans
• Government-Sponsored Health Care Plans

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Private Health Care Plans

• Fee-For-Service or Traditional Indemnity Plans
• Managed Health Care Plans
• Health maintenance organizations (HMOs)
• Preferred provider organizations (PPOs)

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Government-Sponsored Health Care Plans

• Medicaid
• Medicare
• Workers Compensation

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Medical Flexible Spending Accounts

• These accounts allow you to pay for medical
  expenses with pre-tax dollars.
• Money put into the account is used to pay for
  un-reimbursed medical expenses.
• Some expenses are not eligible for coverage.
• You either use the money or lose it.

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Disability Insurance

• Disability income insurance replaces 60 to 80
  percent of your income if you are unable to work
  due to an illness or injury.
• Own versus any occupation
• Residual clause
• Benefit period
• Elimination (waiting) period
• Short-term versus long-term disability

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Long-Term Care Insurance

• Long-term care services are provided when a
  person cannot perform certain activities of daily
  living (ADLs) and/or is cognitively impaired.
• What does long-term care insurance cover?
• Skilled, intermediate and custodial care
• Home care services, physical therapy, homemakers,
  home health aides
• Assisted living, adult daycare, other care in the
  community
• Alternate care (other physician recommended
  services)
• Respite care for the caregiver
• These accounts allow you to pay for medical
  expenses with pre-tax dollars.

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Life Insurance Terms

• Face Value the benefit due upon death
• Insured the person whose life is covered by the
  policy
• Policyholder or Policy Owner the individual or
  business that pays for and owns the policy
• Beneficiary the recipient of the benefit upon
  the death of the insured

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Two Basic Types of Life Insurance

• Term Insurance
• Cash-Value Insurance
• www.trustedquote.comwww.trustedquote.com

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Types of Cash-Value Life Insurance

• Whole Life Insurance
• Universal Life Insurance
• Variable Life Insurance
• Variable-Universal Life Insurance
• www.lifeinsuranceindepth.comwww.lifeinsuranceinde
  pth.com

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Life Insurance Clauses

• Incontestability Clause
• Places a time limit, usually two years, on the
  right of the insurance company to deny a claim
  based on information provided in the application
  
• Suicide Clause
• Gives the insurance company the right to deny a
  claim if the inured dies by suicide within a
  certain period of time, usually two years

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Life Insurance Settlement Options

• Lump-Sum Settlement
• Interest-Only Settlement
• Period-Certain Settlement
• Installment-Certain Settlement
• Life-Annuity or Life Income Settlement

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Types of Automobile Insurance

• Bodily Injury and Property Damage Liability
• Required coverage in the amount of 25/50/25 in
  Georgia
• Medical Payments

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Types of Automobile Insurance

• Uninsured and Underinsured Motorist Bodily Injury
  and Property Damage
• Collision and Comprehensive
• Deductibles apply to this coverage
• Required by lenders if your car is financed

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Types of Automobile Insurance

• No-Fault Insurance
• Only available in no-fault states
• Your insurance pays for your losses and their
  insurance pays for their losses no legal
  battles.
• www.autoinsuranceindepth.comwww.autoinsuranceinde
  pth.com

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Homeowners Insurance Terms

• Replacement Cost/Value the amount necessary to
  repair, rebuild or replace an asset at todays
  prices
• Current Market Value (CMV) Original purchase
  price minus depreciation, also referred to as
  actual cash value
• Floater Policies
• Inflation Protection Endorsement

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Six Basic Forms of Homeowners Insurance

• Basic Forms of Homeowners Insurance
• Broad Form Homeowners Insurance
• Special Form Homeowners Insurance
• Renters Insurance
• Condominium Owners Insurance
• Older Homes Homeowners Insurance
• Policies differ based on the type of property,
  amount of coverage and number of perils (events
  that cause a loss such as fire, tornado, etc.)
  covered.

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Homeowners Insurance Coverage

• Property
• Home
• Other detached buildings
• Personal property
• Landscaping
• Loss of use
• Liability
• Comprehensive personal liability
• No-fault medical payments
• No-fault property damage

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Personal Umbrella Liability Insurance

• Covers liability costs after the underlying
  automobile and homeowners policies have been
  exhausted
• Standard amount of coverage is 1 million
  although higher amounts can be purchased

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Other/Supplemental Insurance

• Dental and Vision Insurance
• Dread Disease and Accident Health and Life
  Insurance
• Private Mortgage Insurance
• Gap Insurance
• www.autoinsuranceindepth.com/gap-insurance.htmlww
  w.autoinsuranceindepth.com/gap-insurance.html
• Credit Life and Disability Income Insurance
• Childrens Life Insurance

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www.gafamilies.com

• 1-800-ASK-UGA1