Week 10 Discussion - ACE 245 Discussion Sections Week 10...

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ACE 245 Discussion Sections – Week 10 Goals: 1) Assess familiarity with important insurance concepts; 2) Provide experience in assessing need for various types of insurance 1. Insurance underwriting involves determining who to insure, what risk category they belong to, and what premium to charge. True False 2. Having a fire extinguisher in your home is an example of loss prevention. True False 3. The primary purpose of life insurance is to save up for ones’ own retirement. True False 4. Life insurance needs grow throughout the usual life cycle. True False 5. Term life insurance is the most economical and simplest form of life insurance. True False 6. Major medical plans are characterized by: a. deductibles, internal limits, and benefit levels b. deductibles, internal limits, and coinsurance c. deductibles, overall caps, and frequency limits d. overall caps, internal limits, and maximum surgical benefits e. deductibles, frequency limits, and decreasing premiums 7. What is the best way to protect against a financial loss due to theft of or damage to unusual personal property, like valuable jewelry or art? a. Increase liability insurance b. Increase the personal property limits on a homeowner’s policy c. Opt for a named peril homeowner’s policy d. Add personal property floaters to a homeowner’s policy e. Specify replacement cost coverage on a homeowner’s policy 8. Suppose Joe has a health insurance policy with a $500 calendar year deductible, a $2,000 out- of-pocket cap, and an 80% coinsurance provision. If his first medical expense of the year is a $600 covered loss, how much will the insurance company pay? ($600 - $500 deductible) * 80% copay = $
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Week 10 Discussion - ACE 245 Discussion Sections Week 10...

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