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Chapter 11 b - automobile accidents Auto insurance policy...

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Underwriters: from an insurance perspective, are hired to calculate the risk of specific insurance policies, decide what policies to offer, and what premiums to charge Insurance company credit ratings and service Select a company that is in good financial condition Shop around for best coverage and price Role of Insurance Companies (cont’d) Role of insurance agents and brokers Insurance agent: recommends insurance policies for customers Captive insurance agent: works for one particular insurance company Independent insurance agent: represent many different insurance companies Role of Insurance Companies (cont’d) Financial Planning Online: Reviews of Insurance Companies Go to: http://www.ambest.com/ratings/ guide.asp This Web site provides information on how insurance companies are rated Auto Insurance Auto insurance protects you from financial loss from damage or liability resulting from
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Unformatted text preview: automobile accidents Auto insurance policy provisions Insurance policy: contract between an insurance company and the policy holder Auto insurance policy: specifies the coverage provided by the insurance company for a particular individual and vehicle Auto Insurance (cont’d) Coverage A: Liability Coverage Bodily injury liability coverage: protects against liability associated with injuries caused by the policyholder Property damage liability coverage: protects against losses that result when the policyholder damages another person’s property with his car Auto Insurance (cont’d) Policy limits often described as 100/300/50 $100,000 per person injured in an accident $300,000 for all people combined $50,000 for property damage Financial responsibility laws: laws that require individuals who drive cars to purchase a minimum amount of liability insurance...
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