Introduction to Business© Thomson South-Western

ChapterChapterChapterChapter

Insurance

20-120-1 Vehicle Insurance

20-220-2 Property Insurance

20-320-3 Life Insurance

20-420-4 Health Insurance

2020

Chapter 20

Slide 2Introduction to Business

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LESSON 20-1

Vehicle Insurance

Goals Discuss motor vehicle risks. Explain auto insurance coverage. Identify factors that affect auto

insurance costs.

Chapter 20

Slide 3Introduction to Business

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Key Terms

bodily injury liability medical payments uninsured motorist property damage liability collision deductible comprehensive coverage

Chapter 20

Slide 4Introduction to Business

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MOTOR VEHICLE RISKS

Financial responsibility Compulsory insurance

Chapter 20

Slide 5Introduction to Business

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>> C H E C K P O I N T

What are financial responsibility laws?

Chapter 20

Slide 6Introduction to Business

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AUTOMOBILE INSURANCE COVERAGE Personal injury coverage

Bodily injury liability protection Medical payments protection Uninsured motorist protection

Property damage coverage Property damage liability Collision insurance Comprehensive coverage

No-fault insurance laws

Chapter 20

Slide 7Introduction to Business

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>> C H E C K P O I N T

What are the two main categories of automobile insurance coverage?

Chapter 20

Slide 8Introduction to Business

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AUTOMOBILE INSURANCE COSTS Insurance rates

Your age and other characteristics Purpose for which you use your car Number of miles you drive each year Value and type of your car Community in which you live Amount of coverage and deductibles

Chapter 20

Slide 9Introduction to Business

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AUTOMOBILE INSURANCE COSTS Reducing auto insurance costs Selecting a company Assigned-risk plans Insurance for other vehicles

(continued)

Chapter 20

Slide 10Introduction to Business

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>> C H E C K P O I N T

What factors affect the cost of automobile insurance?

Chapter 20

Slide 11Introduction to Business

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LESSON 20-2

Property Insurance

Goals Describe property insurance coverage. Explain property insurance policies. Identify factors that affect property

insurance costs.

Chapter 20

Slide 12Introduction to Business

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Key Terms

personal liability coverage homeowners policy depreciation

Chapter 20

Slide 13Introduction to Business

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PROPERTY INSURANCE COVERAGE Damage to home or property Additional living expenses Liability protection

Chapter 20

Slide 14Introduction to Business

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>> C H E C K P O I N T

What are the three main types of property insurance coverage?

Chapter 20

Slide 15Introduction to Business

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PROPERTY INSURANCE POLICIES Homeowners policies Renters policies Special coverage Making a claim

Chapter 20

Slide 16Introduction to Business

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>> C H E C K P O I N T

How does a renters policy differ from homeowners insurance?

Chapter 20

Slide 17Introduction to Business

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PROPERTY INSURANCE COSTS Coverage selection Insurance premiums

Chapter 20

Slide 18Introduction to Business

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>> C H E C K P O I N T

What factors affect the cost of home insurance?

Chapter 20

Slide 19Introduction to Business

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LESSON 20-3

Life Insurance

Goals Discuss the principles of life insurance. Explain the types of life insurance. Describe the process of buying life

insurance.

Chapter 20

Slide 20Introduction to Business

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Key Terms

beneficiary term life insurance permanent life insurance

Chapter 20

Slide 21Introduction to Business

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LIFE INSURANCE PRINCIPLES The life insurance policy Beneficiary selection

Chapter 20

Slide 22Introduction to Business

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>> C H E C K P O I N T

What is an insurable interest?

Chapter 20

Slide 23Introduction to Business

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TYPES OF LIFE INSURANCE Term life insurance Permanent life insurance

Whole life insurance Variable life insurance Universal life insurance

Group life insurance

Chapter 20

Slide 24Introduction to Business

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>> C H E C K P O I N T

What is the difference between term and permanent life insurance?

Chapter 20

Slide 25Introduction to Business

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BUYING LIFE INSURANCE

Coverage amount Life insurance application Premium payments

Chapter 20

Slide 26Introduction to Business

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>> C H E C K P O I N T

What factors affect the need for life insurance?

Chapter 20

Slide 27Introduction to Business

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LESSON 20-4

Health Insurance

Goals Describe health insurance coverage. Discuss health insurance providers. Explain disability and long-term care

insurance.

Chapter 20

Slide 28Introduction to Business

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Key Terms

hospital insurance surgical insurance regular medical insurance major medical insurance coinsurance comprehensive medical policy disability income insurance

Chapter 20

Slide 29Introduction to Business

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HEALTH INSURANCE COVERAGE Hospital insurance Surgical insurance Regular medical insurance Major medical insurance Comprehensive medical policy Dental insurance Vision care insurance

Chapter 20

Slide 30Introduction to Business

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>> C H E C K P O I N T

What four types of health insurance would be included in a comprehensive medical policy?

Chapter 20

Slide 31Introduction to Business

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HEALTH INSURANCE PROVIDERS Group health insurance Individual health insurance Managed care plans

Health Maintenance Organization (HMO) Preferred Provider Organization (PPO)

State government assistance Federal government assistance Cost containment

Chapter 20

Slide 32Introduction to Business

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>> C H E C K P O I N T

Who are the main providers of health insurance?

Chapter 20

Slide 33Introduction to Business

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DISABILITY AND LONG-TERM CARE INSURANCE Disability income insurance Long-term care insurance

Chapter 20

Slide 34Introduction to Business

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>> C H E C K P O I N T

What is the purpose of disability income insurance?