Shared Flashcard Set

Details

Personal Finance
AAEC-VT
17
Finance
Undergraduate 4
11/17/2010

Additional Finance Flashcards

 


 

Cards

Term

HOMEOWNER'S POLICIES

HO1

HO2

HO3

HO4

HO6

HO8

Definition

}HO-1 Basic    (very narrow coverage)
}HO-2 Broad Form    (named perils)
}HO-3 Special Form   (all perils)
}HO-4 Renter’s insurance
Covers renter’s belongings, provides liability coverage for renter
}HO-6 Condominiums
Similar to HO-4, also covers alterations to unit
}HO-8 Older houses
Covers actual cash value instead of replacement value

Term
HO POLICY SECTION 1
Definition

Protects from property losses

4 types of coverage

Type A - Dwelling

Type B - Other structers

Type C - Personal Property

Type D - Loss of use

Term
HO SECTION 2 POLICY
Definition

Personal Liability Insurance

If someone is hurt on property, ho is protected

Minimum is 100k

up to 1k for other people's med expenses

Term
Coverage A
Definition

Protects house and attatched structures

 

Term
Coverage B
Definition

Non-attached structures and landscaping

Doesn't cover land or business assets

up to 10% of the dwelling's coverage

Term
Coverage C
Definition

Covers any personal property, regardless of location

Covers personal property of guests

up to 50% of dwelling coverage

cash limit - $200.00

Documents, stamp collections, etc - $1000

Silverware - 2500

Animals, pets, business assets not covered

Term
Coverage D
Definition

When you can't live in home due to covered perils

Covers up to 20% of dwelling coverage for 

additonal living expenses i e hotels etc

Fair rental value

 

Term
Personal Auto Insurance PAP
Definition

Part A: Liability

Part B: Medical Expense Coverage

Part C: Uninsured Motorist Protection

Part D: Damage to your car

Term
PAP A
Definition

Covers you for damages to other cars and property. 

Court and legal fees are covered.

Not criminal charges, however.

Two types: 

Combined Single:

–Combines property damage and bodily injury
–Will pay up to limit
–Regardless of how many people are involved
Split limit (min)
–Coverage limits for:
–Bodily injury per person ($100,000)
–Bodily injury per accident ($300,000)
–Property damage ($50,000)
–VA minimum:  $25/$50/$20

Term
Main reasons for Life Insurance
Definition

Pay off debts

Provide for final costs

Allow for income for those left behind

Leave behind a legacy

Term
Medicare
Definition

Type A - Hospital Benefits

Type B - Voluntary Supplemental Insurance

Type D - Drugs

Term
Decision Making Process
Definition

Evaluate current position

Set Goals

Identify/Evaluate Alternatives

Make the decision

Monitor the situation

Term
How Much Car can you afford? 
Definition

Consumer Loan Payments <10% of gross income

 

Term
GAP insurance
Definition

Good Ass Protection

If Mrkt Value of Car < Balance you owe leasing company, protects you. 

Term
Housing payments
Definition
Less than 30% of gross annual
Term
PITI + Consumer Debt
Definition
<40%
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