Insurance and Consumer Protection

Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson’s assignment for Section 1 would be named Assignment1JRobinson.

Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.

Review Lesson 4 of the Course Overview for instructions about turning in your assignments.

Assignment Questions

1. Think of a real or made up but realistic example of a pure risk that you or someone you know may face, and then answer the questions below.

a. Describe the specific risk. (1-3 sentences. 0.5 points)

Unemployment.

b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 1.0 points)

No income.

c. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points)

No, you are just unemployed, unless you were in an accident, sick, ect, you would most likely not have unexpected expenses.

d. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)

Have money saved up in a savings account, so if anything like unemployment would arise you have money to live on until you find alternative income.

2. Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer the questions below.

a. Describe the specific risk. (1-3 sentences. 0.5 points)

Medical accidents, for example hip replacement surgery.

b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 0.5 points)

You cannot work for 6-9 weeks after surgery, which means no income.

c. What sorts of positive outcomes are possible for this type of risk? (1-3 sentences. 0.5 points)

The positive outcome is that when healed, may be able to work better.

d. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points)

Yes, such as hospital bills, and physical therapy bills.

e. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points)

There is no way to prevent it, the best you can do is prepare by having money saved up to help.

3. Imagine that you are a parent with young children. You want to get life insurance to protect your children financially until they are old enough to produce their own incomes. Would term life insurance or permanent life insurance be a better choice in this situation? Why? (2-4 sentences. 1.0 points)

Term insurance would be my first choice, because it is limited to whatever age I want, meaning that if something were to happen to me, I would still have assurance for my children, but if nothing does happen until they’re grown up, I wouldn’t have to continue paying.

4. Describe two types of insurance that you have or are likely to have at some point in your life. What risks are these insurance plans protecting you against? Why do you think these types of insurance are important? (4-8 sentences. 3.0 points)

Car insurance and health insurance are two insurances I will have at some point in my future, financial debt is a risk both insurances will protect me from, they are both important to protect me against potential risks.

5. List four valuable items that might be kept in an apartment or house. Next to each item, write the estimated dollar amount that each item might be worth. (Complete sentences are not necessary. 1.0 points)

1) Television $700 3) Engagement Ring $8,000 2) Computer $600 4) Xbox One $500

6. In your Section_6 folder, navigate to and open the Example_Insurance_Application, and then complete the steps below to save a copy of the file with your initials in your Section_6 folder.

a. Click the File menu, and then Click Save a Copy.

b. If a Save a Copy dialog box appears, click Save a Copy.

c. Make sure the Save in drop-down list is set to your Section_6 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_6 folder.

d. In the Name: field, type Example_Insurance_Application followed by your initials.

e. Click Save.

7. Follow the instructions below to fill out the Example_Insurance_Application for Jessie Robinson. This is an application for renter’s insurance. (4.0 points for completing the form correctly according to the instructions below)

a. Fill out the Applicant Information section of the form using the name Jessie Robinson, the date of birth 7/15/88, the SSN 888-88-8888, and the email address [email protected]. Jessie Robinson is not retired.

b. Jessie Robinson is renting an apartment on 785 Maple Avenue in Seattle, WA. The zip code of the address is 00448.

c. Imagine what Jessie Robinson’s answers to the yes and no questions under Coverage Information might be. TIP: There are no right or wrong answers, but make sure to answer each question.

d. Choose a date for Jessie Robinson’s coverage to begin and the number of years Jessie has had insurance coverage. TIP: There are no right or wrong answers, but be sure to answer each question.

e. List Jessie Robinson’s reason for applying for new insurance as Moving to a new address.

f. List the estimated cost of the four household items you determined in question 5 above as the answer to “How much personal property coverage do you need?”

g. Imagine whether Jessie Robinson has animals, and then list what kind. TIP: Consider your answer to the question “Do you have an animal that is vicious or attack trained, or that has previously bitten or injured anyone?” before you answer this question.

h. Click the File menu, and then click Save.

8. In your Section_6 folder, navigate to and open the Example_Insurance_Claim, and then complete the steps below to save a copy of the file with your initials in your Section_6 folder.

a. Click the File menu, and then Click Save a Copy.

b. If a Save a Copy dialog box appears, click Save a Copy.

c. Make sure the Save in drop-down list is set to your Section_6 folder. If not, click the drop-down list, then click Local Disk (C:), then double-click your course folder, and then double-click the Section_6 folder.

d. In the Name: field, type Example_Insurance_Claim followed by your initials.

e. Click Save.

9. Follow the instructions below to fill out the Example_Insurance_Claim for Jessie Robinson. This is a renter’s insurance claim form. (4.0 points for completing the form correctly according to the instructions below)

a. Use the information from the Insurance_Application form you filled out in question 7 above to fill out the Insurance Policyholder Information section of the Insurance_Claim form. TIP: Jessie Robinson’s phone number is 206-999-0000.

b. Fill out the rest of the form with a realistic loss Jessie might have suffered, such as a fire, flood, or robbery. Imagine how severe the damage was and what, if any, evidence Jessie has of the loss. Describe what happened and list at least two damages or injuries the loss caused. Estimate the total cost of the loss.

10. Describe at least two ways you or someone you know might be at risk for identity theft. (1-2 sentences. 2.0 points)

11. Describe at least three things you can do to protect yourself from identity theft. (1-3 sentences. 2.0 points)

12. Describe at least three steps you should take after finding out that your credit card was stolen. (1-3 sentences. 2.0 points)