INSURANCE Chapter 18 2 Insurance Liability Insurance The
INSURANCE Chapter 18. 2
Insurance Liability Insurance � The type of coverage or insurance that pays for injuries to the people or damage to the property if the individual insured is responsible for an accident during the term of the contract Contract �A legally enforceable agreement Premium � Payments made for insurance coverage
Malpractice Lawsuits brought by clients or patients who claim that a professional person provided services in a negligent manner � Type of Liability Insurance
Auto Insurance Auto insurance pays for losses: � Cost of repairing the car � Medical bills � Lost wages � Pain and suffering Auto Liability � Pays for injuries to others if you are responsible � Limits Injuries person ($100, 000) Total injuries to all persons involved in the accident ($300, 000) Property damage per accident ($50, 000) Lawsuit required to obtain more damages
Auto Insurance cont’d Medical Coverage � Pays for your own medical expenses or any passenger regardless of who is at fault � Limited per policy ($100, 000 person) Collision Coverage � Pays for damage to your own car up to the value of the car regardless of who is at fault Deductible � Amount you agree to pay toward repairs before the insurance company pays for anything � Agreement to pay a high deductible lowers cost of insurance policy
Auto Insurance concluded Comprehensive Coverage � Protects against damages or loss to your car from causes other than collisions Vandalism, fire, theft, suicidal animals Uninsured Motorist Coverage � Protects you from other drivers who do not have insurance or do not have enough insurance (inexpensive) No-Fault Insurance � Own insurance company will pay up to a certain amount for injuries you receive regardless of fault Waive the right to sue the other driver later
Worker’s Compensation Automatically compensates (or pays) employees who are injured on the job � Even if worker was negligent Employers make regular contributions to a state fund or buy insurance for this purpose Receive approximately 2/3 of salary Worker cannot sue employer
Exclusive Remedy The only compensation available to a worker/plaintiff is worker’s compensation � No further lawsuits Must notify the employer Go to a doctor File a claim
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