Chapter 20
Insurance
20-1
20-2
20-3
20-4
Vehicle Insurance
Property Insurance
Life Insurance
Health Insurance
Introduction to Business
© Thomson South-Western
LESSON 20-1
Vehicle Insurance
Goals
 Discuss motor vehicle risks.
 Explain auto insurance coverage.
 Identify factors that affect auto
insurance costs.
Chapter 20
Slide 2
Introduction 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 3
Introduction to Business
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MOTOR VEHICLE RISKS
 Financial responsibility
 Compulsory insurance
Chapter 20
Slide 4
Introduction to Business
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>> C H E C K P O I N T
What are financial responsibility laws?
Chapter 20
Slide 5
Introduction 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 6
Introduction 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 7
Introduction to Business
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AUTOMOBILE INSURANCE
COSTS
 Insurance rates
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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 8
Introduction to Business
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AUTOMOBILE INSURANCE
(continued)
COSTS
 Reducing auto insurance costs
 Selecting a company
 Assigned-risk plans
 Insurance for other vehicles
Chapter 20
Slide 9
Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
What factors affect the cost of automobile
insurance?
Chapter 20
Slide 10
Introduction to Business
© Thomson South-Western
LESSON 20-2
Property Insurance
Goals
 Describe property insurance coverage.
 Explain property insurance policies.
 Identify factors that affect property
insurance costs.
Chapter 20
Slide 11
Introduction to Business
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Key Terms
 personal liability coverage
 homeowners policy
 depreciation
Chapter 20
Slide 12
Introduction to Business
© Thomson South-Western
PROPERTY INSURANCE
COVERAGE
 Damage to home or property
 Additional living expenses
 Liability protection
Chapter 20
Slide 13
Introduction 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 14
Introduction to Business
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PROPERTY INSURANCE
POLICIES
 Homeowners policies
 Renters policies
 Special coverage
 Making a claim
Chapter 20
Slide 15
Introduction 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 16
Introduction to Business
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PROPERTY INSURANCE
COSTS
 Coverage selection
 Insurance premiums
Chapter 20
Slide 17
Introduction 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 18
Introduction to Business
© Thomson South-Western
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 19
Introduction to Business
© Thomson South-Western
Key Terms
 beneficiary
 term life insurance
 permanent life insurance
Chapter 20
Slide 20
Introduction to Business
© Thomson South-Western
LIFE INSURANCE
PRINCIPLES
 The life insurance policy
 Beneficiary selection
Chapter 20
Slide 21
Introduction to Business
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>> C H E C K P O I N T
What is an insurable interest?
Chapter 20
Slide 22
Introduction 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 23
Introduction 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 24
Introduction to Business
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BUYING LIFE INSURANCE
 Coverage amount
 Life insurance application
 Premium payments
Chapter 20
Slide 25
Introduction 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 26
Introduction 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 27
Introduction to Business
© Thomson South-Western
Key Terms
 hospital insurance
 surgical insurance
 regular medical insurance
 major medical insurance
 coinsurance
 comprehensive medical policy
 disability income insurance
Chapter 20
Slide 28
Introduction to Business
© Thomson South-Western
HEALTH INSURANCE
COVERAGE
 Hospital insurance
 Surgical insurance
 Regular medical insurance
 Major medical insurance
 Comprehensive medical policy
 Dental insurance
 Vision care insurance
Chapter 20
Slide 29
Introduction to Business
© Thomson South-Western
>> 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 30
Introduction to Business
© Thomson South-Western
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 31
Introduction to Business
© Thomson South-Western
>> C H E C K P O I N T
Who are the main providers of health
insurance?
Chapter 20
Slide 32
Introduction to Business
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DISABILITY AND LONGTERM CARE INSURANCE
 Disability income insurance
 Long-term care insurance
Chapter 20
Slide 33
Introduction to Business
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>> C H E C K P O I N T
What is the purpose of disability income
insurance?
Chapter 20
Slide 34
Introduction to Business
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