FP120 r9 Insurance Worksheet PDF

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Download FP120 r9 Insurance Worksheet PDF

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Insurance Worksheet FP120 Version 9

University of Phoenix Material Insurance Worksheet Directions: Match the following words with the correct definition. Enter the letter of the correct definition in the Answer column.

Term

Answer

Definition

1.

Premium

E

A. The set amount that a policyholder must pay before benefits are paid under an insurance policy

2.

Deductible

A

B. A network of participating medical providers who have contracted to provide services for certain fees. You can receive care from providers outside of your network, but it will be at a higher fee.

3.

Copayment

F

C. Federally funded health insurance program available primarily to people over 65 or those with a disability. Additional insurance may be purchased to supplement coverage.

4.

Coverage

H

D. Health plan that provides a wide range of services for a fixed monthly premium. Preventive services are typically fully covered under this type of plan. Must receive care from providers covered under the plan.

5.

Health Maintenance Organization

D

E. The amount of money a policyholder pays for an insurance policy

6.

Preferred Provider Organization

I

F.

A flat fee that a policyholder must pay for each received service

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Insurance Worksheet FP120 Version 9

7.

Point-of-Service Plan

B

G. The legal responsibility for the financial cost of another person’s losses or injuries

8.

Medicare

C

H. The protection provided the terms of an insurance policy

9.

Medicaid

J

I.

Managed care plan in which a group of doctors and hospitals agree to provide care at rates preapproved by the insurer. Premiums may be slightly higher than other plans because there is more flexibility in seeing other plan-approved doctors without referrals

10.

Liability

G

J.

State administered program offered to low-income people and families.

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Directions: For each type of insurance listed, explain in at least 50 words the characteristics of each listed type of coverage. Be sure to paraphrase and to cite any sources as needed. Type of Insurance

Description of Coverage

Auto

Bodily Injury Coverage Bodily injury coverage is insurance that covers any type of physical injury caused by a vehicle accident you were responsible for. Examples of people injured by your car are pedestrians, people in other vehicles, or passengers of your own vehicle. This insurance even covers any deaths and it will pay for expenses related to the auto accident. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.265

Collision Collision insurance covers damage on your vehicle when it is involved in an accident. It allows you to collect money even if it was your fault. You can only collect the money your car is worth at the time of the accident. Let’s say your car has all this expensive features like self heating leather seats and these awesome tv screens if you have no proof for this type of automobile additions then your car will not be covered for those additions. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.267

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Insurance Worksheet FP120 Version 9

Comprehensive Physical Damage Comprehensive physical damage coverage protects your car if it is damaged in a nonaccident situation, examples are fire, theft, falling objects like a tree, vandalism, hail floods, tornadoes, earthquakes and avalanches. It will also cover your car in case of being stolen. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.267

Home and Property

Replacement value Replacement value is a claim settlement method in which the insured receives the full cost of repairing or replacing a damaged or lost item. While under the coverage of this insurance you will receive the full cost of repairing or replacing an item. Depreciation is not considered. Word of advice, many companies limit the replacement cost to 400% of the item’s actual cash value. Replacement value is more expensive than actual cash value. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.262

Actual Cash Value Actual cash value is the amount equal to the replacement cost minus depreciation of a damaged or stolen property at the time of the loss. It is the actual value for which the property could be sold, which is always less than what it would cost to replace it. Depreciation is the loss of value of an item as it gets older. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p262

Liability Coverage Homeowner’s liability insurance protects homeowner’s from being sued against damage happening while in your property. It protects you and your family members if others sue you for injuries they suffer or damage to their property. This coverage also includes the cost of legal defense. Keep in mind that not all individuals who come to your property are covered by your liability insurance. An example of who is not covered by liability’s insurance are employees.

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Insurance Worksheet FP120 Version 9 Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.257

Personal Property Floater This insurance is best for expensive musical instruments, or need added protection for computers and related equipment a personal property floater insurance is best for you. This is an additional insurance that covers the damage or loss of a specific item of high value. This requires a detailed description of the item and its worth. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.257

Disability

Employer Disability Plans Employers provide disability income insurance through group insurance plans. Your employer will pay part or all of the cost of such insurance. Sometimes, this type of policies may provide continued wages for several months only, other plans will give you long term protection. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.307

Private Income Insurance Programs It offers protection from loss of income resulting from illness or disability. It gives weekly or monthly cash payments to people who cannot work because of illness or accident. The amount paid is usually 40 to 60% of a person’s normal income. Some plans pay as much as 75% Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.307

Social Security disability This is a total disability program, not for a short term or temporary disability program. Medical records must be provided to show that you will be disabled for at least one year. http://www.ssdrc.com/disabilityquestions2-7.html

Workmen’s Compensation This is a form of insurance providing wage replacement and medical benefits to employees injured in

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Insurance Worksheet FP120 Version 9 the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for the tort of negligence. http://www.investopedia.com/terms/w/workers-compensation.asp

Life

Term Life It is also called temporary life insurance, it provides protection against loss of life for only a specific term or period of time. A term insurance policy pays a benefit only if you die during the period it covers, it could be 1, 5, 10, or 20 years up to age 70. Premiums must be continued to be payed. This coverage is mostly needed when you have small children. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.327

Whole Life This is another major type of insurance, it is also called a straight life policy, a cash value policy, or an ordinary life policy. It is a permanent policy for which you pay a specific premium each year for the rest of your life. In return the insurance company pays your beneficiary a stated sum when you die. Kapoor, J., Dlabay, L., & Hughes, R. J. (2016). Focus on Personal Finance (5th ed.). p.328

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