A major difference between stock and mutual insurers
involves the combination of property insurance, liability
insurance, life insurance, and health insurance by a
single insurance company.
stock insurers are incorporated and mutual insu
morale hazard, moral
From the insured's perspective, not owning or riding in an
automobile is an example of which type of risk mitigation?
moral hazard, societal
societal hazard, moral
The U of I Student Plan
NORMALLY printed as booklet
NOT THE POLICY
NOT printed this year.
Available on Compass and at
Jones has a Homeowners policy. Her dog bites the mailman while he is still about three blocks away from the premises.
there is no coverage under the policy.
medical payments coverage applies, but not the liability coverage.
the policy will p
For which of the following vehicles would the liability
coverage under Section II of the Homeowners policy provide
additions in contact with the
an owned go-cart while being used away from the
Peter purchased a new car and to try it out, went for a
drive in the country. On that first day, Peter hit a deer.
While riding your bicycle on campus, you are hit by a
Peter's car is badly damaged and will not run. It costs
repair your car. How much will the State Farm car policy pay?
(Omit dollar sign and decimal places-round to nearest dollar)
While Harold was driving his car across a bridge in
Wisconsin, the bridge collapses and Harold's car falls into the
Numeric (omit "$" [dollar sign] and whole number only [no
For a first-time 16-year-old driver there is a 30% chance that he will
get in a major accident resulting in a loss of $5,000 and a 20%
chance that he will get in a small
Major Auto Policy Types
Illinois + 37 other states
First party coverages AND third party
Personal Auto Policy (PAP)
Commercial Auto Policy
No Fault/ Modified No-Fault
DC, FL, HI, KS, KY, MA,
Homeowner Policy Forms
Basic Form /Fire Policy+
All-risk on home,
named-peril or all-risk on personal property
Association unit policy (condo & coop)
Risk = Unpredictable
Risk = Variation from expected
Types of Life Insurance
Interest sensitive life, Equity Indexed UL,
Limited pay & Endowment policies
Temporary pure protection
Structure of the Insurance Industry
Full service financial organizations
Mergers / Holding companies
Private Insurance Organizations
Social InsuranceGovernment Insurance
SSI & Medicaid
Why have Social Insurance?
Floor of coverage
No private coverage
Decreasing selfsufficiency of families
Renters & Condominium owners
Landlords Package Policy
Section I- property loss coverages
Dwelling (Coverage A)