CSR Quiz 5

You’re legally liable when:

1) Negligent

2) Actual injury or damage

3) Proximate Cause

Most liability insurance (like auto or homeowners) only covers ________, not things you do on purpose.

Accidents

These accidents are legally called

unintentional torts

What doesn't count in terms of negligence.

If you hurt someone on purpose (like punching someone), that’s not negligence — that’s an intentional act.

Comprehensive Personal Liability Coverage

This is the part of your homeowners insurance that protects you if someone else gets hurt or something gets damaged — and it might be your fault.

Coverage E

• Pays for legal defense + injury/damage costs if you’re sued

• You have to be legally liablePays medical bills for others, even if you’re not at fault

Coverage F

• Pays medical bills for others, even if you’re not at fault

• No lawsuit needed

Personal Injury Endorsement:

Adds coverage for non-physical injuries like libel, slander, or false arrest.

Home Business Endorsement:

Covers liability from a small business run from your home.

Identity Theft Endorsement:

Helps recover costs from identity fraud.

Professional Liability Insurance

This is a special type of insurance for people with expert jobs — like doctors, accountants, or financial advisors

Medical Malpractice Insurance

• This is for doctors, nurses, surgeons, etc.

• It covers you if a patient is hurt because of a medical error

Errors and Omissions Insurance (E&O)

• This is for professionals who give advice or services, like:

  • Accountants

  • Financial planners

  • Real estate agents

  • Insurance brokers

• It covers financial losses caused by your error or failure to act.

Personal Umbrella Policy

Think of this like “extra protection” that sits on top of your home and auto insurance.

It helps when:

• A big accident happens

• You get sued for a LOT of money

• And your regular insurance isn't enough

Personal Umbrella Policy covers:

• Personal injuries (like someone slipping at your house)

• Auto accidents

• Slander, libel, defamation

• Property damage

• Legal defense costs

Personal Umbrella Policy Doesn't Cover:

• Business-related liability

• Intentional harm (hurting someone on purpose)

• Criminal acts

Financial Responsibility Laws:

You show proof of ability to pay damages after an accident.

Mandatory Insurance

Must have insurance before you drive.

No-Fault Laws:

You collect from your own insurance regardless of fault for bodily injuries.

Coverage in the Personal Auto Policy (PAP):

Part A: Liability

Part B: Medical Payments

Part C: Uninsured/Underinsured Motorists

Part D: Physical Damage

Personal Auto Policy: Part A

Liability

• Covers bodily injury and property damage to others if you’re at fault.

• Includes legal defense.

Personal Auto Policy: Part B

Medical Payments

• Covers medical bills for you and passengers regardless of fault.

Personal Auto Policy: Part C

Uninsured/Underinsured Motorists

• Pays your injuries if hit by someone who has no insurance or too little.

• Only kicks in if other driver is at fault and has insufficient or no coverage.

Personal Auto Policy: Part D

Physical Damage

1. Collision: Your car hits another car/object (even if it’s your fault).

2. Other-than-Collision: Theft, fire, hail, animal strike, etc.

Auto Insurance Endorsement: Named Non-owner

For people who don’t own a car but drive others’.

Auto Insurance Endorsement:Miscellaneous Vehicle

Covers motorcycles, ATVs, etc.

Subrogation

Your insurance pays you, then goes after the at-fault driver to get the money back

Health insurance is a plan that helps you pay for?

medical care — like doctor visits, hospital stays, surgeries, prescriptions, etc.

Public Health Insurance (Government-sponsored)

These are funded by taxes and usually have no or low monthly premiums.

Private Health Insurance

You pay a monthly premium for these plans, plus other costs like deductibles, copays, etc.

Public Health Insurance: Medicaid

Low-income individuals and families

Public Health Insurance: Medicare

People 65+ or with certain disabilities

Public Health Insurance: VA Programs

Military veterans and their families

Private Health Insurance: Employer-sponsored

You get it through your job. Your employer usually pays part of the premium.

Private Health Insurance: Individual plan

You buy it yourself (e.g., through Healthcare.gov or directly from an insurance company).

Deductible

The amount of money you must pay first before your insurance starts helping.

Copayment (Copay)

A small flat fee you pay when you get a service (doctor visit, prescription, etc.)

Coinsurance

After you meet your deductible, you and the insurance split the remaining costs.

Annual Out-of-Pocket Limit

The maximum amount you’ll have to pay in one year (for covered services).