47 47 Fraud and ProtectionFraud and Protection

WarrantiesWarranties

WarrantiesWarranties guarantees that a guarantees that a manufacturer or similar party makes manufacturer or similar party makes regarding the condition of its product. regarding the condition of its product.

It also refers to the terms and It also refers to the terms and situations in which repairs or situations in which repairs or exchanges will be made in the event exchanges will be made in the event that the product does not function as that the product does not function as originally described or intended.originally described or intended.

Implied WarrantyImplied Warranty

Under a sales contract, whether written or Under a sales contract, whether written or oral, there is a guarantee that the item oral, there is a guarantee that the item sold is fit for the purpose intended. sold is fit for the purpose intended. 

This guarantee is enforced by law and is This guarantee is enforced by law and is added to any expressed warranties that added to any expressed warranties that are provided at the time of sale. are provided at the time of sale. 

These implied warranties exist to protect These implied warranties exist to protect consumers who might otherwise pay for consumers who might otherwise pay for products that are not as represented by products that are not as represented by the seller.the seller.

Full WarrantyFull Warranty

A full warranty is a warranty that completely A full warranty is a warranty that completely covers the repair or replacement of any covers the repair or replacement of any defect in a consumer product.defect in a consumer product.

State and federal laws require that if the State and federal laws require that if the company making the warranty will repair the company making the warranty will repair the item, it must be fixed within a reasonable item, it must be fixed within a reasonable time and it must be reasonably convenient time and it must be reasonably convenient to get the item to and from the repair site. to get the item to and from the repair site.

Many stores will offer a short full warranty of Many stores will offer a short full warranty of their own (thirty to ninety days). their own (thirty to ninety days).

Limited WarrantyLimited Warranty

A A limited warrantylimited warranty is much more is much more common. common.

Not surprisingly, it covers less. Not surprisingly, it covers less. It may cover only parts and not labor It may cover only parts and not labor

or the dealer warranty on a used car or the dealer warranty on a used car may provide that the cost of repairs may provide that the cost of repairs be split fifty-fifty for the first thirty be split fifty-fifty for the first thirty days.days.

InsuranceInsurance

Insurance is a contract in which Insurance is a contract in which someone receives financial someone receives financial protection or reimbursement against protection or reimbursement against losses from an insurance company. losses from an insurance company.

The company pools clients' risks to The company pools clients' risks to make payments more affordable for make payments more affordable for the insured. the insured.

LiabilityLiability

Liability Insurance is any type of insurance Liability Insurance is any type of insurance policy that protects an someone from the policy that protects an someone from the risk that they may  be sued and held legally risk that they may  be sued and held legally liable for something such as malpractice, liable for something such as malpractice, injury, or negligence. injury, or negligence. 

Liability insurance policies cover both legal Liability insurance policies cover both legal costs and any legal payouts for which the costs and any legal payouts for which the insured would be responsible if found legally insured would be responsible if found legally liable. liable.

Intentional damage and contractual Intentional damage and contractual liabilities are typically not covered in these liabilities are typically not covered in these types of policies.types of policies.

Collision Collision

Collision is a type of auto insurance Collision is a type of auto insurance coverage. coverage.

Collision Insurance will reimburse the Collision Insurance will reimburse the insured for any damage sustained to insured for any damage sustained to their personal automobile that is due their personal automobile that is due to the fault of the insured driver. to the fault of the insured driver.

This type of insurance is often added This type of insurance is often added as an extension of a basic policy.as an extension of a basic policy.

Personal PropertyPersonal Property

Personal Property Insurance is a policy that Personal Property Insurance is a policy that provides payment to the owner or renter of a provides payment to the owner or renter of a structure and its contents, in the event of structure and its contents, in the event of damage or theft. damage or theft.

Property insurance can include homeowners Property insurance can include homeowners insurance, renters insurance, flood insurance, and insurance, renters insurance, flood insurance, and earthquake insurance. earthquake insurance.

Personal property is generally covered by a Personal property is generally covered by a homeowners or renters policy, unless it is of homeowners or renters policy, unless it is of particularly high value, in which case it can particularly high value, in which case it can usually be covered by purchasing an addition to usually be covered by purchasing an addition to the policy called a "rider". the policy called a "rider".

Homeowners and FloodHomeowners and Flood

Homeowners insurance is a form of Homeowners insurance is a form of property insurance designed to protect an property insurance designed to protect an individual's home against damages to the individual's home against damages to the house itself, or to possessions in the home. house itself, or to possessions in the home. 

Homeowners insurance also provides Homeowners insurance also provides liability coverage against accidents in the liability coverage against accidents in the home or on the property.home or on the property.

Flood Insurance protects real property Flood Insurance protects real property owners from water damage to the structure owners from water damage to the structure and/or contents of their property. and/or contents of their property.

Medical InsuranceMedical Insurance

Medical Insurance is a type of insurance Medical Insurance is a type of insurance coverage that pays for medical and surgical coverage that pays for medical and surgical expenses that are incurred by the insured. expenses that are incurred by the insured.

Medical insurance can either pay back the Medical insurance can either pay back the insured for expenses incurred from illness insured for expenses incurred from illness or injury or pay the care provider directly. or injury or pay the care provider directly.

Medical insurance is often included in Medical insurance is often included in employer benefit packages as a means of employer benefit packages as a means of enticing quality employees. enticing quality employees.

MedicareMedicare

Medicare is a federal health program that Medicare is a federal health program that subsidizes people who meet one of the subsidizes people who meet one of the following criteria:following criteria: 1. An individual over the age of 65 who has 1. An individual over the age of 65 who has

been a U.S. citizen or permanent legal resident been a U.S. citizen or permanent legal resident for five years. for five years.

2. An individual who is disabled and has 2. An individual who is disabled and has collected Social collected Social for a minimum of two years. for a minimum of two years.

Medicare helps out people at a time in their Medicare helps out people at a time in their lives when they may have serious health lives when they may have serious health problems but lack the problems but lack the for treatment. for treatment.

Medicaid Medicaid

Medicaid is a joint federal and Medicaid is a joint federal and state program that helps low-income state program that helps low-income individuals or families pay for the costs individuals or families pay for the costs associated with long-term medical and associated with long-term medical and custodial care, provided they qualify. custodial care, provided they qualify.

Although largely funded by the federal Although largely funded by the federal government, Medicaid is run by the government, Medicaid is run by the state where coverage may vary. state where coverage may vary.

Federal Deposit Insurance Federal Deposit Insurance Corporation (FDIC)Corporation (FDIC)

The FDIC is a U.S. program insuring deposits The FDIC is a U.S. program insuring deposits in the U.S. against bank failure. in the U.S. against bank failure.

The FDIC was created in 1933 to maintain The FDIC was created in 1933 to maintain public confidence and encourage stability in public confidence and encourage stability in the financial system through the promotion of the financial system through the promotion of sound banking practices during the Great sound banking practices during the Great Depression. Depression.

The FDIC will insure deposits of up to The FDIC will insure deposits of up to US$250,000 per institution as long as the US$250,000 per institution as long as the bank is a member bank. bank is a member bank.

ObamacareObamacare

The The Patient Protection and Affordable Patient Protection and Affordable Care ActCare Act ( (PPACAPPACA), commonly called ), commonly called ObamacareObamacare, is a federal law signed into , is a federal law signed into law by President Obama in 2010. law by President Obama in 2010.

It represents the most significant overhaul It represents the most significant overhaul of the U.S. healthcare system since the of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965passage of Medicare and Medicaid in 1965

PPACA is aimed primarily at decreasing PPACA is aimed primarily at decreasing the number of uninsured Americans and the number of uninsured Americans and reducing the overall costs of health care. reducing the overall costs of health care.

DeductiblesDeductibles

A deductible is the amount you have to pay out-A deductible is the amount you have to pay out-of-pocket for expenses before the insurance of-pocket for expenses before the insurance company will cover the remaining costs.company will cover the remaining costs.

For example, if you get into an accident and your For example, if you get into an accident and your medical expenses are $2,000 and your deductible medical expenses are $2,000 and your deductible is $300, then you would have to pay the $300 is $300, then you would have to pay the $300 out-of-pocket first before the insurance company out-of-pocket first before the insurance company paid the remaining $1,700. paid the remaining $1,700. 

However, if your accident only resulted in $300 in However, if your accident only resulted in $300 in medical expenses, then you would pay the $300 medical expenses, then you would pay the $300 deductible and the insurance company would pay deductible and the insurance company would pay nothing.nothing.

Insurance FraudInsurance Fraud

Insurance Fraud is an illegal act on the part Insurance Fraud is an illegal act on the part of either the buyer or seller of an insurance of either the buyer or seller of an insurance contract. contract.

Insurance fraud from the seller includes Insurance fraud from the seller includes selling policies from non-existent selling policies from non-existent companies, failing to submit premiums and companies, failing to submit premiums and churning policies to create more churning policies to create more commissions. commissions.

Buyer fraud includes exaggerated claims, Buyer fraud includes exaggerated claims, falsified medical history, post-dated policies, falsified medical history, post-dated policies, faked death or kidnapping, murder and faked death or kidnapping, murder and much more. much more.

Identity TheftIdentity Theft The crime of obtaining the personal or The crime of obtaining the personal or

financial information of another person for the financial information of another person for the sole purpose of assuming that person's sole purpose of assuming that person's name or identity in order to make name or identity in order to make transactions or purchases. transactions or purchases.

Once they have the information they are Once they have the information they are looking for, identity thieves can ruin a looking for, identity thieves can ruin a person's credit rating and the standing of person's credit rating and the standing of other personal information. other personal information. 

Many types of identity theft can be Many types of identity theft can be prevented. One way is to continually check prevented. One way is to continually check the accuracy of personal documents and the accuracy of personal documents and promptly deal with any discrepancies. promptly deal with any discrepancies.

Credit Monitoring ServiceCredit Monitoring Service

A credit monitoring service is offered by many A credit monitoring service is offered by many credit card issuers and the three main credit credit card issuers and the three main credit bureaus that involves monitoring credit bureaus that involves monitoring credit activity for cardholders. activity for cardholders.

Customers who sign up for such a service pay Customers who sign up for such a service pay a monthly fee and receive insurance coverage a monthly fee and receive insurance coverage that will pay for losses (up to $1,000,000 in that will pay for losses (up to $1,000,000 in some cases) in the event of ID theft. some cases) in the event of ID theft.

Additional features of some services include Additional features of some services include regular access to credit scores and alerts regular access to credit scores and alerts regarding any new or suspicious credit regarding any new or suspicious credit activity.activity.

Welfare ReformWelfare Reform

Welfare reformWelfare reform refers to improving refers to improving how a nation helps poor people. how a nation helps poor people.

In the United States, the term was used In the United States, the term was used to get Congress to enact the Personal to get Congress to enact the Personal Responsibility and Work Opportunity Responsibility and Work Opportunity Act, which further reduced aid to the Act, which further reduced aid to the poor, to reduce government deficit poor, to reduce government deficit spending without printing more money.spending without printing more money.

BankruptcyBankruptcy

Bankruptcy is a legal proceeding involving Bankruptcy is a legal proceeding involving a person or business that is unable to a person or business that is unable to repay outstanding debts. repay outstanding debts.

All of the debtor's assets are measured All of the debtor's assets are measured and evaluated, then the assets are used to and evaluated, then the assets are used to repay a portion of outstanding debt. repay a portion of outstanding debt. 

Upon the successful completion of Upon the successful completion of bankruptcy proceedings, the debtor is bankruptcy proceedings, the debtor is relieved of the debt obligations obtained relieved of the debt obligations obtained prior to filing for bankruptcy. prior to filing for bankruptcy.

Tarp MoneyTarp Money

Troubled Asset Relief Program Troubled Asset Relief Program Tarp is a government program Tarp is a government program

created in an attempt to curb the created in an attempt to curb the ongoing financial crisis of 2007-2008. ongoing financial crisis of 2007-2008.

The TARP gives the U.S. Treasury The TARP gives the U.S. Treasury purchasing power of $700 billion to purchasing power of $700 billion to buy up bank debt.buy up bank debt.

Opponents against TARP call it a Opponents against TARP call it a “bailout”.“bailout”.

Better Business Bureau Better Business Bureau (BBB)(BBB)

The Better Business Bureau (BBB) aims to The Better Business Bureau (BBB) aims to promote ethical business practices, leading to promote ethical business practices, leading to an environment where buyers and sellers can an environment where buyers and sellers can operate under a common understanding of operate under a common understanding of trust. trust.

Through encouraging better practices on the Through encouraging better practices on the part of the consumer and the business and part of the consumer and the business and setting proper marketplace standards, the BBB setting proper marketplace standards, the BBB provides educational material regarding general provides educational material regarding general and specific desirable business practices. and specific desirable business practices.