Preview Units 9 - 10

Unit Eight Preview

Unit Seven Review

Insurance Law – Unit EightThe Homeowners Policy, Individual Liability Insurance, and Automobile Coverage

Unit 7 Review

Health insurance can be considered as two separate types: disability insurance and medical expense insurance. Unit Seven explores both types of insurance by explaining disability income insurance and describing the process of gaining coverage for medical expenses. Lastly, this unit aims to explore health insurance issues that are unique to the elderly.

Assignments :

•Learn the key terms•Read Chapters 20, 21, and 22 of your textbook; read about HIPAA and Medicaid planning•Discuss what you have learned. (graded)•Meet at the weekly seminar to further explore the concepts in this unit. (graded)

Unit 7 Review

Disability Income Insurance

Some experts argue that, for many people, disability insurance is more necessary to have than life insurance.

Life insurance, payable upon the death of the insured party, helps the survivors to proceed without the insured's income.

In the case of a disability, The income stream from the disabled person may come to an end. There may also be major expenses in caring for the disabled person in addition to the usual living expenses.

In simple economic terms, the claim of a disabled person may be more costly than the claim of a deceased person. Additionally, the probability of disability at most ages before retirement is greater than the probability of death at the same ages.

Unit 7 Review

Health Insurance

When it comes to health insurance in the United States, the right to continue to be insured is not guaranteed by law. It is a contractual provision, agreed to by the parties to the health insurance contract.

Some health insurance contracts provide that they are noncancelable, meaning that the insurer may not cancel the policy. Other contracts may be known as "guaranteed renewable" which means that the policy may be renewed after an adjustment to the premium is made to its entire class of health insurance policies.

Other health insurance contracts may be canceled, but only for specific reasons identified in the contract. On the other extreme are health insurance contracts cancelable at the option of the insurer, presumably just when an insured is most likely to need health insurance.

Unit 7 Review

Health Insurance

There are some standard provisions common to almost all health insurance contracts. Very briefly, the common elements are listed below.

• The entire contract is contained within the policy. • There is a time limit (typically 2 or 3 years) to contest the provisions

of the contract. • There are grace periods for the payment of premiums. • Lapsed policies for non payment can be reinstated, with

reinstatement taking effect upon approval by the insurer. • The policyholder must notify the insurer of a claim within 20 days of

the underlying event. • The insurer must provide appropriate claim forms to the insured

after the insurer is notified of a claim. • Proof of loss must be provided to the insurer within 90 days after

the insurance period has ended. • Benefits are payable by the insurer immediately after receiving

proof of loss. • Benefits are payable to the insured or the insured's estate.

Unit 7 Review

Review Questions:

Discuss the reasons for the coinsurance feature, and the deductible in the major medical policy.

Are both really necessary ?

Unit 7 Review

Review Questions:

Explain the primary difference between Medicare and Medicaid.

Preview Unit 8

In Unit Eight we will review “The Homeowners Policy, Individual Liability Insurance, and Automobile Coverage”. At one point or another, many individuals will set out to insure their homes, their automobiles, and even themselves from liability or damages. It could be said that obtaining coverage for these purposes is a rite-of-passage for many adults.

Certainly, if a home or automobile is financed by a bank, that financial institution will require the debtor to purchase a policy on the subject of the loan. As these types of insurance are so common, it is wise for a paralegal to become familiar with them. This unit will, therefore, examine the homeowners' policy, the automobile coverage policy and the individual liability insurance policy -- policies frequently dealt with in legal practices.

Assignment:

-Learn the key terms (Hint: Use the flashcards located on the unit summary page)-Read Chapters 24, 28 and 29 of your textbook -Discuss what you have learned. (graded)-Meet at the weekly seminar to further explore the concepts in this unit. (graded)-Submit your Final Exam Essays (graded)

THE HOMEOWNER’S POLICYTHE HOMEOWNER’S POLICY

What is it?What is it?

Why is it important?Why is it important?

What do you want to make sure is What do you want to make sure is included?included?

How do you decide between Polices How do you decide between Polices that provide either:that provide either:– 1. Replacement Cost1. Replacement Cost– 2. Actual Cash Value2. Actual Cash Value

What are the 2 section in What are the 2 section in Homeowner’s Policies?Homeowner’s Policies?– 1. Property Coverage1. Property Coverage– 2. Liability/Medical2. Liability/Medical

Who does Med’l Payments apply to?Who does Med’l Payments apply to?

Under Section I (Coverages) what is Under Section I (Coverages) what is specified?specified?– Item A=DwellingItem A=Dwelling– Item B=Other StructuresItem B=Other Structures– Item C=Personal PropertyItem C=Personal Property– Item D= Loss of UseItem D= Loss of Use

What are the two type of “Perils”What are the two type of “Perils”

1. “Named Peril”- What is that?1. “Named Peril”- What is that?

2. “Open Peril”- What is that?2. “Open Peril”- What is that?

What does it mean to have What does it mean to have “Replacement Cost Coverage”?“Replacement Cost Coverage”?– What is “Guaranteed Replacement What is “Guaranteed Replacement

cost”? (Notice)cost”? (Notice)

How is Actual Cash Value How is Actual Cash Value determined?determined?

ExclusionsExclusions

What are the normal exclusions What are the normal exclusions under the Homeowner’s Policy?under the Homeowner’s Policy?

– AutoAuto– Roomer/Boarder/Tenant propertyRoomer/Boarder/Tenant property– Rented PropertyRented Property– Business DataBusiness Data– Credit CardsCredit Cards– Aircraft/WatercraftAircraft/Watercraft– AnimalsAnimals

What are some of the “Special What are some of the “Special Coverages” that are popular today Coverages” that are popular today under Homeowners Insurance?under Homeowners Insurance?

Identity Fraud Identity Fraud

ForgeryForgery

Review QuestionReview Question

If a person is playing in a sports If a person is playing in a sports match, and attacks another player. match, and attacks another player. Are these types of perils covered?Are these types of perils covered?

Terms for ReviewTerms for Review

What is a Deductible?What is a Deductible?

What is the average Deductible What is the average Deductible under the HO policy?under the HO policy?

How high can a deductible be?How high can a deductible be?

What does it mean for a policy to What does it mean for a policy to have “Limits of Liability”have “Limits of Liability”

What is a “Policy Period”?What is a “Policy Period”?

What is “Assignment”?What is “Assignment”?

What is “Subrogation”?What is “Subrogation”?

GENERAL LIABILITYGENERAL LIABILITY

What is “Negligence”?What is “Negligence”?

What are the elements of What are the elements of “Negligence”?“Negligence”?

NEGLIGENCE is:NEGLIGENCE is:– DutyDuty– BreachBreach– CausationCausation– DamagesDamages

What is generally included under a What is generally included under a General Liability policy?General Liability policy?

What is a “Professional Liability” What is a “Professional Liability” PolicyPolicy

What is an “Umbrella Policy”What is an “Umbrella Policy”– Average cost?Average cost?

AUTOMOBILE INSURANCEAUTOMOBILE INSURANCE

How are the limits of Auto insurance How are the limits of Auto insurance usually identified?usually identified?

10/20/510/20/5– What does that mean?What does that mean?

What does the Med’l Payment What does the Med’l Payment coverage provide?coverage provide?

What is covered under “Physical What is covered under “Physical Damage Coverage”?Damage Coverage”?– Comprehensive?Comprehensive?– Collision?Collision?

What is “Un-insured Motorist What is “Un-insured Motorist Coverage”?Coverage”?– What does it provide?What does it provide?

What is Under-insured Motorist What is Under-insured Motorist Coverage?Coverage?– What does it provide?What does it provide?

Vicarious LiabilityVicarious Liability

What is it?What is it?

What is the “Family Purpose What is the “Family Purpose Doctrine”?Doctrine”?

Review QuestionReview Question

If you allow your neighbor to drive If you allow your neighbor to drive your car, and she runs over Ms. Mary your car, and she runs over Ms. Mary in the crosswalk, are you liable?in the crosswalk, are you liable?

What is a Tort?What is a Tort?

What is a “No-Fault” law?What is a “No-Fault” law?

What is PIP?What is PIP?

What are the factors used to What are the factors used to determine Auto rates?determine Auto rates?– AgeAge– SexSex– Use of AutoUse of Auto– Driving recordDriving record

Are these factors fair?Are these factors fair?

QuestionQuestion

Should all states have compulsory Should all states have compulsory auto insurance? auto insurance?

Do Such laws protect people???Do Such laws protect people???

Preview Units 9 – 10

In Unit Nine, we will extend the introduction to automobile insurance from the previous Unit. This Unit will elaborate on the Personal Automobile Policy. The unit also focuses on the commercial general liability policy since more and more companies are choosing to insure their commercial assets and businesses.

Finally, this unit gives you an opportunity to tie up any loose ends and offers them a preview of the future of insurance. Upon completion of this unit, you should be able to discuss the six parts of a personal auto policy and explain commercial liability insurance, comparing and contrasting it with the homeowner's policy. You should also be able to identify failings of various insurance programs and discuss possible solutions to those problems.

Assignment:

-Learn the key terms-Read Chapters 30, 32, and 34 in your textbook;-Discuss what you have learned. (graded)-Meet at the weekly seminar to further explore the concepts in this unit. (graded)-Submit your Short Paper Assignment (graded)

Preview Units 9 – 10

Unit Ten :

This week you will have the opportunity to reflect back on what you have learned during the past ten weeks and how you plan to apply this newfound knowledge to your future academic and professional pursuits. In addition to making this journal entry, you will also get the chance to give feedback to the administration regarding your experiences with the course and the performance of your instructor.

Adjourn

Have a great week…

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