Unit 7 Modeling and Practice Guide: ● Insurance ● Insurability ● Deductible ● Premium ● Coverage Lim

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Name: _________________________ Unit 7 Modeling and Practice Guide Part 1: Vocabulary Directions: Make sure you understand and could explain each term in your own words. Optional: Write out definitions or make flashcards for terms you are struggling with or want to study more. ● Insurance ● Consumer Protection ● Fair Debt Collection ● Insurability Legislation Practices Act ● Identity Theft ● Fair Credit Reporting Act ● Deductible ● Investment Scams ● Equal Housing Act ● Premium ● Pyramid Schemes ● Dodd Frank Act ● Coverage Limits ● Pump and Dump ● Investing ● Shared Liability ● Ponzi Schemes ● Skimming ● Asset Protection ● Advance Fee Scams ● Phishing ● Risk ● Better Business Bureau ● Data Breaches ● Truth in Lending Act Part 2 Short Answer Directions: Answer the following questions using COMPLETE sentences.

1. Explain why people buy insurance.

Risk management is done through insurance. When you get insurance, you pay a charge to the insurance provider and transfer the cost of a potential loss to them.

2. Why do insurance rates vary?

Because each insurance company employs a different algorithm to evaluate risk and determine how much you pay, auto insurance rates vary from one to the next.

3. How do government agencies offer protection in banking, investments, borrowing and buying goods and services?

Setting up online or automatic bill pay with your banking institution will help ensure that you pay your bills on time, avoid late fees, and enhance your credit through your on-time payment history if you frequently find that your out-of-sight financial commitments are also out-of-mind.

4. What is identity theft?

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Identity theft happens when someone commits fraud or another crime using another person's personal information—such as their name, identification number, or credit card number—without that person's consent.

5. List and describe 7 ways to protect yourself from identity theft.

Keep yourself safe online dont give out personal information review bills protect your paper records be aware of surrounding when using card check your credit report freeze your credit report if u see something suspicious

6. List and describe at least 4 steps that should be taken if a person thinks they are a victim of identity theft. freeze your credit card notify companies your identity has been stolen file a claim with your identity theft insurance place a fraud alert on your credit reports

Part 3 Complete the following Charts by Filling them in Completely 7. In the chart below describe the various types of insurance by giving a definition and what they are needed for.

Type of Insurance

Definition and Example

Automobile

A contract between you and the insurance provider known as auto insurance safeguards you

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Health

a deal whereby your health insurance agrees to cover all or a portion of your medical expenses

Whole Life

is a life insurance policy that will continue to be in effect until the maturity date or for the duration of the insured's life, whichever comes first.

Term Life

Term life insurance, often known as term assurance, is a type of life insurance that offers protection for a set number of years at a predetermined rate of payments.

Renters

safeguards your personal belongings in rental housing from unforeseen events including theft, fire, and sewer backup damage.

Flood

covers losses caused by flooding

Property

items your business owns

Disability

gives a percentage of your income in the event that you are sick or hurt and can't work.

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8. Define the costs and benefits of buying insurance using the key vocabulary below.

Key Vocabulary

Definition

Premium

an amount to be paid for an insurance policy.

Deductible

a specified amount of money that the insured must pay before an insurance company will pay a claim.

Coverage Limits

determines the maximum amount of money an insurance company will pay for a covered claim.

Shared Liability

any Liability that, in accordance with this Agreement, is shared, divided, or in any other way between RemainCo and SpinCo,

Asset Protection

to strategies used to guard one's wealth from taxation, seizure, or other losses.

9. Compare and contrast different methods for lodging consumer complaints.

Lodging a Complaint

Example

Better Business Bureau Online Methods Direct Contact with the Business

10. Explain the primary purpose of the important consumer legislation below.

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Consumer Legislation

Purpose

Truth in Lending Act

safeguards you against false and deceptive credit billing and credit card methods

Fair Debt Collection Practices Act

eliminate abusive, deceptive, and unfair debt collection practices.

Fair Credit Reporting Act

safeguards the data gathered by consumer reporting organizations, including credit bureaus, health information providers, and tenant screening services.

Equal Housing Act

ensures that individuals are protected from discrimination when renting or purchasing a property, applying for a mortgage, requesting housing aid, or taking part in other housing-related activities.

Dodd Frank Act

will stop the overly reckless behavior that caused

11. Describe common ways identity theft happens below.

How Identity Theft Happens

What is it?

Phishing

the dishonest act of sending emails from what appear to be trustworthy businesses to trick recipients into disclosing personal information like passwords and credit card data.

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Stealing

When you take something from someone

Skimming

occurs when equipment installed erroneously on fuel pumps, POS terminals, or ATMs records data or records the PINs of cards.

Dumpster Diving

When you find information in trash cans

Data Breaches

A data breach is a security incident in which external attackers or hostile insiders unlawfully obtain access to sensitive data, including medical records, financial information, or personally identifying information.

12. Fill out the chart below describing the basic characteristics of investment scams.

Investment Scam

Definition

How to Avoid

Ponzi Scheme

Pyramid Scheme

Advance Fee Scams Pump and Dump This study source was downloaded by 100000858468549 from CourseHero.com on 04-21-2023 16:21:11 GMT -05:00

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