CHAPTER 14, 14-2Insurable Risks

How insurance worksINSURANCE COMPANY

Insurer Insured

YOU

How insurance worksINSURANCE COMPANY

Insurer Insured

YOU

Insurance policy

Here you go!

How insurance worksINSURANCE COMPANY

Insurer Insured

YOU

Premium

Thanks!

How insurance worksINSURANCE COMPANY

Insurer Insured

YOUUh oh! Something happened. I need your help!

File a claim

No problemo! That’s why we’re here.

Ways to get insuranceBuy it directly from the companyGet it through your employerObtain it through a professional

organization (ex. VEA)

TYPES OF AGENTS

Single company agent Freelance agent

Writes insurance policies for only the company they work for

Writes insurance policies for several different companies.

What can you insure?Most common are:Vehicle, property, health, & life

insurance.

BUSINESS INSURANCEInsuring personnel

Health insuranceDisability insuranceLife insurance

BUSINESS INSURANCEInsuring property

Commercial property insuranceVehicle insurance

BUSINESS INSURANCEInsuring operations

Business interruption insuranceLiability insurance

THE REASON BUSINESSES AND INDIVIDUALS PURCHASE INSURANCE IS TO

a. Make a profitb. Provide financial protectionc. Reduce taxesd. Increase sales

THE REASON BUSINESSES AND INDIVIDUALS PURCHASE INSURANCE IS TO

a. Make a profitb. Provide financial protection!!c. Reduce taxesd. Increase sales

ANOTHER TERM FOR AN INSURANCE COMPANY IS THE POLICYHOLDER.

True or false?

ANOTHER TERM FOR AN INSURANCE COMPANY IS THE POLICYHOLDER.

True or false!!

INSURANCE THAT PROVIDES COVERAGE FOR CLAIMS BY OTHERS BASED ON DAMAGES SUFFERED AS A RESULT OF BUSINESS OPERATIONS, EMPLOYEES, OR PRODUCTS IS

a. Health insuranceb. Property insurancec. Vehicle insuranced. Liability insurance

INSURANCE THAT PROVIDES COVERAGE FOR CLAIMS BY OTHERS BASED ON DAMAGES SUFFERED AS A RESULT OF BUSINESS OPERATIONS, EMPLOYEES, OR PRODUCTS IS

a. Health insuranceb. Property insurancec. Vehicle insuranced. Liability insurance!!