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The least expensive loan is
Parents or family members, and lending institutions.
the Medium priced loans is
commercial banks, federal savings banks, and credit unions.
The expensive priced loans are
Finance companies, retailers, bank through credit cards.
Truth in lending law
a federal law hat requires creditors to disclose annual percentage rates and the finance charge as a dollar amount
The add on interest method is
a method of computing interest in which interest is calculated on the full amount of the original principal
Adjusted balance method is
Assessment of finance charges after payments made during the billing period have been subtracted
previous balance method is
Computing finance charges that give no credit for payments made during the billing period
Average daily balance method is
Computing finance charges that uses a weighted average of the account balance throughout the current billing period
Rule of 78s is
A mathematical formula to determine how much interest has been paid at any point in a loan term
Fair Debt Collection Practices Act (FDCPA)
A federal law, enacted in 1978, that regulates debt collection activities
Debt collectors are prohibited by federal law to..
contact you about a debt at a time or place they know is inconvenient for you
Consumer Credit Counseling Service (CCCS)
A local, nonprofit organization that provides debt counseling services for families and individuals with serious financial problems.
The major provisions of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009:
limits the issuer's ability to increase the interest rate in the first year
Records covering many years and including millions of lives have been combined into tables called the:
Standard Ordinary Mortality Table
the following factors should be considered before buying life insurance
group life insurance
present and future income
net worth
An endowment life insurance policy pays the policyholder money at the maturity date, whereas a traditional policy pays the beneficiaries
upon death of the insured
The Standard Ordinary Mortality Table of 2001 was originally structured based on age and
gender
Which household has the highest need for life insurance?
Households with small children
Which method uses an equation of 70% of your salary for seven years?
easy method
the following are factors that affect the price of an insurance policy
the costs of doing business
the mortality rate it expects among policyholders
the return on investments
A plan where the policyholder pays the same premium for as long as they live is called a(n):
whole life policy.
Roughly about 10% of all dollars are spent on
health care
factors that have led to increasing health care costs":
The use of expensive technologies
An increased number of crimes and accidents
In order to contain health care costs, physicians are encouraging consumers to pay with ? for routine medical care and lab services.
Cash or debit
A good health insurance provides:
at least $1 million lifetime maximum for each family member
a provision so the policyholder will pay no more than $6,000 out of pocket a year
Health insurance is one way people protect themselves against economic losses due to
disability
illness
accident
the following activities have been undertaken by health care professionals and consumers to keep the overall cost of health care down
initiating community health education programs
getting involved in community health planning
offering incentives to encourage preventive care
A "good" health insurance plan pays at least __% percent of out-of-hospital expenses once a yearly deductible for the individual and family have been met.
80
Which insurance supplements Medicare by filling the difference between Medicare payments and medical costs not covered by Medicare?
medigap insurance
What program was designed to provide medical assistance to low-income individuals and families?
Medicaid
? insurance makes up the difference between Medicare payments and medical costs not covered by providing supplemental insurance that can be purchased.
Medigap or medsup
what factors has not been attributed to increasing health care costs?
a focus on healthy living options
coordination of benefits (COB)
A method of integrating the benefits payable under more than one health insurance plan.
hospital expense insurance
Pays part or all of hospital bills for room, board, and other charges.
surgical expense insurance
Pays part or all of the surgeon’s fees for an operation.
Good health insurance should:
Offer basic coverage for hospital and doctor bills
Provide at least 120 days hospital room and board in full
Provide at least $1M lifetime maximum for each family member
Pays at least 80% of hospital expenses
Impose no unreasonable exclusions
Limit out-of-pocket expenses to no more than $4,000 - 6,000 a year excluding dental, optical and prescription costs.
Blue Cross
An independent membership corporation that provides protection against the cost of hospital care.
Blue Shield
An independent membership corporation that provides protection against the cost of surgical and medical care.
managed care
Prepaid health plans that provide comprehensive health care to members.
health maintenance organization (HMO)
A health insurance plan that provides a wide range of health care services for a fixed, prepaid monthly premium.
preferred provider organization (PPO)
A group of doctors and hospitals that agree to provide health care at rates approved by the insurer.
exclusive provider organization (EPO)
A network that renders medical care from affiliated health care providers.
Medicare
A federal health insurance program for people 65 or older, people of any age with permanent kidney failure, and people with certain disabilities. The program is administered by the Centers for Medicare and Medicaid Services.
Medicaid
A program of medical assistance to low-income individuals and families.
disability income insurance
Provides payments to replace income when an insured person is unable to work.
peril
The cause of a possible loss.
hazard
A factor that increases the likelihood of loss through some peril.
pure risk
A risk in which there is only a chance of loss; also called insurable risk.
speculative risk
A risk in which there is a chance of either loss or gain.
Step 1 to your personal insurance program
Insurance goals
Step 2 to your personal insurance program
Develop a plan to reach goals
Step 3 to your personal insurance program
Put into action
Step 4 to your personal insurance program
Check results
strict liability
A situation in which a person is held responsible for intentional or unintentional actions.
vicarious liability
A situation in which a person is held legally responsible for the actions of another person.
personal property floater
Additional property insurance to cover the damage or loss of a specific item of high value.
umbrella policy
Supplementary personal liability coverage; also called a personal catastrophe policy.
Renters insurance
Only about 4 out of 10 renters are covered
coinsurance clause
A policy provision that requires a homeowner to pay for part of the losses if the property is not insured for the specified percentage of the replacement value.
actual cash value (ACV)
A claim settlement method in which the insured receives payment based on the current replacement cost of a damaged or lost item, less depreciation.
financial responsibility law
State legislation that requires drivers to prove their ability to cover the cost of damage or injury caused by an automobile accident.
bodily injury liability
Coverage for the risk of financial loss due to legal expenses, medical costs, lost wages, and other expenses associated with injuries caused by an automobile accident for which the insured was responsible.
uninsured motorist protection
Automobile insurance coverage for the cost of injuries to a person and members of his or her family caused by a driver with inadequate insurance or by a hit-and-run driver.
no-fault system
An automobile insurance program in which drivers involved in accidents collect medical expenses, lost wages, and related injury costs from their own insurance companies.
property damage liability
Automobile insurance coverage that protects a person against financial loss when that person damages the property of others.
comprehensive physical damage
Automobile insurance that covers financial loss from damage to a vehicle caused by a risk other than a collision, such as fire, theft, glass breakage, hail, or vandalism.
rating territory
The place of residence used to determine a person’s automobile insurance premium.
driver classification
A category based on the driver’s age, sex, marital status, driving record, and driving habits; used to determine automobile insurance rates.
the following risks are covered by homeowner's insurance
Coverage for the financial risks of damage to personal property
Coverage for your place of residence
Coverage for the financial risks associated with injuries to others
The goals of insurance include:
minimizing personal risks.
minimizing liability risks.
minimizing property risks.
The main types of risks related to a home and an automobile are
damage or loss to your property
your responsibility for injuries to others
your responsibility for damage to the property of others
what best defines homeowner's insurance?
coverage for your residence and its financial risks
The main bodily injury coverages are
uninsured motorist's protection.
medical payments coverage.
bodily injury liability.
Most of the money automobile insurance companies pay in claims goes for
medical expenses
legal expenses
other costs that arise when someone is injured
the following are covered by renter's insurance
personal property
personal liability
additional living expenses
What are some ways of reducing premiums on automobile insurance?
Comparison shopping for automobile insurance
Maintaining a safe driving record
Completing driver training
Installing security devices
The main bodily injury coverages are:
medical payments coverage.
uninsured motorist's protection.
bodily injury liability.
Most of the money automobile insurance companies pay in claims goes for
legal expenses
medical expenses
other costs that arise when someone is injured
Comparison shopping is
the process of evaluating alternative stores, brands and prices.
a rebate is
a partial refund of the price of a product
service contracts are
agreements between business and consumer to cover the repair costs of a product.
personal factors that could affect your daily buying habits:
education, gender, age, occupation
Open dating is
The information on the label of some food products includes that help the consumer determine freshness.
an advantage of leasing an automobile is
smaller upfront cash outlay
A full warranty is
Product can be fixed or replaced during a reasonable amount of time
A limited warranty is
covers only certain aspects of the product such as parts or requires the buyer to incur part of the cost for shipping or repairs
what are the following automobile driving costs are categorized as fixed ownership costs
Registration fees, insurance, interest on car loans, depreciation.
Most consumer complaints are resolved
at the original sales location
arbitration is
a third party tries to settle a grievance and the process is binding.
Advantages of renting include
mobility, fewer responsibilities, lower initial costs
disadvantages of renting include
Fewer financial benefits, restricted life style, legal details
Step 1 of the home buying process is
Determine house ownership needs
Step 2 of the home buying process is
Find and evaluate a property to purchase
Step 3 of the home buying process is
Price of the property
Step 4 of the home buying process is
obtain financing
Step 5 of the home buying process is
Close and purchase transaction
Single family dwellings are
Previously owned houses, new houses and custom built houses that are detached from one another
multiunit dwellings are
two housing units that are usually owned from a different home owner, these include duplexes and town houses
Condominiums are
individually owned housing units in a building w/ several units. Housing ownership doesn’t include places such as hallways
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