Insurance Flashcards
Primary purpose for insurance
To ensure adequate funds when in need
What would cause you to file a liability claim?
Sum bad happens to someone due to other persons negligence
Whats not covered by comprehensive insurance
Flooding
Why do annual house insurance rates sometimes exceed inflation?
Housing prices + replacement costs are higher than inflation + part of the problem is cali
Whats covered by comprehensive insurance
Natural disasters and theft
True or false does home insurance cover personal property?
True
True or false collision insurance is worth it if you have an old car
False
A deductible
The amount the person needs to pay before the insurance pays the rest
Three factors that impact insurance rates
Age, location, gender
No fault insurance
Pays the person for damage done to their car
Life insurance should replace the _______ and cover the costs related to ______
Family’s lost income
A death
True or false family members can be held accountable for medical costs of a deceased family member?
True
True or false corporations aren’t trying to have healthy employees to lower their premiums?
False
Whole life combines two elements
Provides a savings component and death benefits
What did universal life fix
High rates and only having certain benefits
