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Name: Aubrey YapDate: 5/28/13Financial Planning – Insurance Review QuestionsCompletely answer all of the following questions in the space provided.Individuals who buy insurance?InsuredCompany you purchase insurance protection from?InsurerCurrent cash value considering depreciation (decrease in value because of age and wear)Actual Cash ValueInsured transfers risk by paying certain sums of money?PremiumAnything that may possibly cause a loss?PerilThe amount that you are limited to for each type of coverage, example, up to $100,000 for property damage coverage?LimitProtects you against risk by transferring the risk to the insurance company?InsuranceSituation in which some type of loss is possible. Could be: financial, physical, material? RiskThe failure to take ordinary or reasonable care to prevent accidents from happening?Negligence Anything that increases the likelihood of loss through some peril? HazardWhat type of auto insurance coverage pays for damage to or theft of your car?Collision CoverageWhat type of auto insurance coverage pays for your legal responsibility to others for bodily injury or property damage?Liability What type of auto insurance coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses?MedicalThis type of insurance refers to the fact that if you have an accident and your car is damaged beyond repair or “totaled” there’s likely to be a difference between the amount that you still owe the auto dealer and the check you will get from your insurance company?“GAP” insuranceIn addition to the state requirements, what insurance is required if you lease a car?Auto Insurance PolicyThis coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes.Property Damage LiabilityThis coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or prehensive This coverage pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, it can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident, it may also cover funeral costs?Medical Payments or Personal Injury ProtectionThis coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission. It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.Property damage LiabilityThis coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver. This coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrianUninsured and Underinsured Motorist Coverage Coverage that provides protection for your residence and its associated financial risks, such as damage to personal property and injuries to others.Homeowners Insurance This covers the damage or theft of specific item of high value like Art or Jewelry?Personal Property floater Be aware that if an insurance company adds this document to the policy it can change the terms by adding or excluding specified conditions or altering benefitsRiderWhat are 5 factors that affect the cost of homeowner’s insurance? Home's Age and Type of ConstructionHome’s LocationClaims HistoryRisk Factors on the PropertyCredit ScoreHomeowner’s Insurance provides coverage for the following… (4 Areas)Dwelling?— pays for damage or destruction to your house and any unattached structures and buildings, such as fences, detached garages, and storage sheds.Personal Property?— covers the contents of your house, including furniture, clothing and appliances, if they are stolen, damaged, or destroyed.Liability?— protects you against financial loss if you are sued and found legally responsible for someone else's injury or property damage.Medical Payments?— Covers medical bills for people hurt on your property. Medical Payments coverage also pays for some injuries that may happen away from your home, such as if your dog bites someone.Loss of Use?— pays for additional living expenses if your home is too damaged to live in during repairs. Most standard home insurance coverage pays 10 to 20 percent of the amount of your dwelling coverage. ................
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