Monday April 27 2015 Agenda Review Investing Finish

Monday April 27, 2015 Agenda Review Investing Finish Auto Insurance Notes Consumer Protection Looking at a Lease Homework

Civics and Economics Day 146

Review • • What is the relationship between risk and reward? When should you save and when should you invest? What is an example of high risk? What is an example of low risk? What is an example of moderate risk? What two types of insurance are you required to have? Which do you pay every month: premium or deductible?

Automobile Insurance

Types of Insurance • Types of insurance can include: – Automobile (Required for Drivers) – Health (Required by The Affordable Health Care Act) – Life – Disability – Homeowners/Renters – And More!

Automobile Insurance Types There are four types of coverage for Automobile Insurance: Liability insurance Medical payment insurance Uninsured or underinsured motorists insurance Physical damage insurance Collision Comprehensive

Liability Insurance covers the insured if injuries or damages are caused to other people or their property It is the minimum amount of insurance required by law for automobiles

Medical Payment insurance Medical Payment Insurance covers injuries sustained by the driver of the insured vehicle or any passenger regardless of fault It also covers family members injured as passengers or if injured as a pedestrian

Uninsured motorists insurance Uninsured or Underinsured Motorists Insurance covers injury or damage to the driver, passengers, or the vehicle caused by a driver with insufficient insurance

Physical damage insurance Physical Damage Insurance covers damages caused to the vehicle o Collision – covers a collision with another object, car, or from a rollover o Comprehensive – covers all physical damage losses except collision and other specified losses

Consumer Protection

People are out to get your money! Identity Theft This is when someone steals your information and uses it for their own! Online Scams CONGRATULATIONS YOU JUST WON AN i. PAD AIR 2!!!! PUT IN YOUR BANK ACCOUNT NUMBER AND ADDRESS AND PERSONAL INFORMATION!

Schemes Ponzi Schemes Investment that uses new money that is invested to pay others. Ex” Guaranteed Investment” Pyramid Scheme “ You Pay me $100 dollars and then recruit 10 people who pay $100 and you make $900 and then they recruit 10 people…. ”

Scheme? Multi-level Marketing o A business that earns a percent from the product they have you sell. o You might earn a profit for every person you recruit.

How to Protect yourself and others! Do Not Call List Solicitors keep calling your house? Put a stop to it. Read the Everything, including the Fine print ALWAYS READ THE FINE PRINT ON IMPORTANT DOCUMENTS Contact someone that can help Better Business Bureau for bad business practices They can revoke a license Attorney General Fraudulent activity

Lease Part of being an adult is getting a place of your own. Most of us will not buy the first house we move into, so we will have to rent and sign a lease. Signing a lease is a good idea because it puts into a legally binding document what each person is responsible for and can help protect you!