Objective [1]
Develop a risk management plan using insurance.
The four general risk management techniques are risk avoidance,
risk reduction, risk assumption, and risk shifting. In planning a
personal insurance program, set your goals, make a plan to reach
your goals, put your plan into action, and review your results.Objective [2]
Discuss the importance of property and liability insurance.
Owners of homes and automobiles face the risks of (1) property
damage or loss and (2) legal actions by others for the costs of injuries
or property damage. Property and liability insurance offer
protection from financial losses that may arise from a wide variety
of situations faced by owners of homes and users of automobiles.Objective [3]
Explain the insurance coverages and policy types available
to homeowners and renters.
Homeowner's insurance includes protection for the building and
other structures, additional living expenses, personal property, and
personal liability. Renter's insurance includes the same coverages
excluding protection for the building and other structures, which
is the concern of the building owner. The main types of home insurance
policies are the basic, broad, special, tenants, comprehensive,
condominium, country home, and modified coverage forms.
These policies differ in the risks and property they cover.Objective [4]
Analyze factors that influence the amount of coverage and
cost of home insurance.
The amount of home insurance coverage is determined by the
replacement cost of your dwelling and personal belongings. The
cost of home insurance is influenced by the location of the
home, the type of structure, the coverage amount, the policy
type, discounts, and insurance company differences.Objective [5]
Identify the important types of automobile insurance
coverages.
Automobile insurance is used to meet states' financial responsibility
laws and to protect drivers against financial losses associated
with bodily injury and property damage. The major types
of automobile insurance coverages are bodily injury liability,
medical payments, uninsured motorist's, property damage liability,
collision, and comprehensive physical damage.Objective [6]
Evaluate factors that affect the cost of automobile
insurance.
The cost of automobile insurance is affected by the amount of
coverage, automobile type, rating territory, driver classification,
differences among insurance companies, and premium discounts.
