Grab your handouts and settle in Roll Call Question: Hard or soft shell tacos??? Bell Work: How is interest of a savings account different from interest of a credit card? Why do you think car insurance is mandatory? What terms can we use when the bank takes away your house as collateral for your failure to pay back a loan WE ARE HAVING A SOCRATIC SEMINAR NEXT TUESDAY!!!! You must bring your documents with note/annotations to class to participate All those who do not will observe silently and complete an additional assignment You must contribute to the discussion to receive credit for this assignment Objective: Analyze the importance of insurance A. Life is full of Risk uncertainty about a situations outcome B. Insurance arrangement between an individual and an insurer to protect against risk 1. Purpose helps limit financial losses when an accident/unexpected occurs A. A consumer must buy a policy contract specifying the terms of the insurance arrangement 1. Premium - fee paid to the insurer to cover the losses and also the costs of operating the business 2. Deductible fee paid out of pocket by the policy holder before insurance can kick in 3. Co-Pay % of your total medical bill paid when you visit the Dr.s office or buy prescriptions Grab your handouts and settle in Turn in your College and Career Readiness homework to the class tray Roll Call Question: Would you rather explore the depths of the ocean or the depths of space? Bell Work: What can help us determine what Credit Card is best for us? Explain the difference between a premium and a deductible What type of insurance would you have to pay a co-pay? What about a deductible? We get to pick up the little guy tomorrow!!!! A. Automotive Insurance 1. covers car accidents and other damage to your car B. Health Insurance 1. covers health-care costs, may include dental and vision 25/50/25 or 100/300/100 What do they mean? Refers to the dollar amounts in 1000s associated with the level of Bodily Injury and Property Damage Coverage you have selected. For instance, if you have 100/300/100 coverage it means you have $100,000 for injury available per person, $300,000 total for the accident, with $100,000 allotted for property damage C. Home Owners/ Renters 1. covers loss of personal possessions, damage to property, and injury to others D. Life Insurance 1. when a policy owner dies this covers debts, expenses, funeral and education Objective: Determine how to be a responsible consumer in the 21 st century What is identity theft? What is fraud? A. A crime in which someone wrongfully obtains and uses another person's personal information Types: Phishing Skimming Credit Card theft video video a. attempt to acquire the identity of someone by asking for sensitive information i.e. username, password, credit card number. b. Watch Out For being asked to update personal information ** A legitimate business will always ask for the information on a secure website or in person. a. illegal copying of information from the magnetic strip of a credit or ATM card. b. Watch out for unusual devices on the ATM swipe machine a. Fraud spree: unauthorized charges on existing accounts. b. Hackers can steal account information from personal computers or company computers. (1) Account takeovers involve the criminal hijacking of an existing credit card account. (2) Application Fraud opening of credit card accounts in another person's name. lost or stolen cards Your mailbox Stealing your pin during a purchase Your trash Hacking Over the phone Personnel records Employees of a business steal card info A. Deliberate deception usually for economic gain. Examples of Fraud: Ponzi Schemes Pyramid Schemes On line scams a. convince people to invest in a fake company for great returns. b. Once the scam artist feels that enough money has been collected, he disappears with the money 1. Convince a few people to invest. 2. Return some money to investors 3. Convince more investors based on success many original investors will invest again 4. Repeat steps 1 through 3 a number of times. 5. Before step 2 in one of the cycles, disappear Bernie Madoff Grab todays handout and settle in Roll Call Question Bell Work a. investment where each paying investor recruits two other investors. The first investor makes money from his recruits they make money by recruiting more b. People at the top make money from people on the bottom c. Main characteristic of a pyramid scheme is that participants only make money by recruiting more members. How Do Pyramid Schemes Work? Ponzi v. Pyramid a. Work at Home Ads Too good to be true b. Fake charity organizations Natural disasters are popular Be part of one of Americas Fastest Growing Industries. Be the Boss! Earn thousands of dollars a month from home a. It includes viruses and spyware that get installed on your computer, phone, or mobile device without your consent. b. Can be used for fraud Extra credit due next Thursday Test is Wednesday If you will not be here Monday,ME!!! You will still be expected to take your test. Bring In your Dr. Suess Books!