Get out one piece of lined paper

Label Insurance types

Name and Describe 10 different types of Insurance

Insurance Basics
A presentation prepared by State Farm Insurance and distributed by the Insurance Education Foundation of Oregon

1996 Insurance Education Foundation of Oregon

BASIC INSURANCE CONCEPT

Distributing costs among a large group of people to share the losses experienced by a few.

1996 Insurance Education Foundation of Oregon

HISTORY OF INSURANCE CONCEPT

Insurance had its beginning in ancient China. Merchants traveling on the dangerous Yangtze River combined their loads so if one ship went down, no one person would lose all of their goods.

1996 Insurance Education Foundation of Oregon

LIFE INSURANCE

Life insurance protects against financial distress due to unexpected death.

1996 Insurance Education Foundation of Oregon

HEALTH AND DISABILITY INSURANCE

Insured is hospitalized and receives treatment

Health insurance helps cover medical costs. Also, some coverages compensate for income lost due to the illness.

1996 Insurance Education Foundation of Oregon

PROPERTY INSURANCE

Covers the cost to replace the insured item (business burns down) Loss of income from the item (business must close temporarily) Extra expense due to the loss of the item (business must rent another building until old building is repaired)

1996 Insurance Education Foundation of Oregon

INSURABLE ITEMS

PROPERTY INSURANCE

HOMES

ANIMALS

JEWELRY/WATCHES

BUSINESSES

OTHER INSURABLE ITEMS GUNS, CLOTHES, FURS SPORTING GOODS FURNITURE

COMPUTERS/ELECTRONICS
1996 Insurance Education Foundation of Oregon

LIABILITY

You are liable when you are legally bound to make good on a loss or damage that occurs in an interaction.

1996 Insurance Education Foundation of Oregon

FACTORS OF INSURABILITY

1. Must be large number of people with similar potential for loss. 2. Loss must be definite. 3. Loss must be accidental. 4. Loss must cause financial burden. 5. Loss must be calculable. 6. Insurance must be affordable.
1996 Insurance Education Foundation of Oregon

WHY INSURANCE COMPANIES GROUP

35 30 25 20 15 10 5 0 16-24 35-44 55-64 Number Drivers All Accidents Fatal Accidents

1996 Insurance Education Foundation of Oregon

CONTRIBUTIONS TO GNP
120 100 80 60 40 20 0 Phone Cos. Ins. Banks Car Hotels Makers

1996 Insurance Education Foundation of Oregon

1991 INSURANCE INDUSTRY EMPLOYMENT

2.2 MILLION JOBS

LIFE AND HEALTH COMPANIES 877,700 AGENTS, BROKERS, AND SERVICES 668,500 PROPERTY AND CASUALTY COMPANIES 616,800

1996 Insurance Education Foundation of Oregon

INSURANCE INDUSTRY IN OREGON

Over 500 insurance companies

Employ 23,630 people Annual payroll of $650,096,000

Paid taxes of $60,811,000 in 1991

1996 Insurance Education Foundation of Oregon