Business Math

Business Math

Grade 11

Open Ended

What are the different types of insurance you have known?

Chapter 9.4

Vehicle Insurance, Pages 350-353

Objectives

• Describe liability insurance 

• Differentiate between collision insurance and comprehensive insurance 

• Evaluate the deductible clause of the insurance

Information

If your vehicle is involved in an accident, it can cause bodily injury to the people involved, property damage to other vehicles or property, such as light poles, and collision damage to your vehicle. Vehicle owners carry insurance to cover the costs associated with an accident.

Video

https://www.youtube.com/watch?v=04SZGS6DdVM

Open Ended

1.Explain liability insurance in your own words.

2. Why do you need liability insurance?

Liability insurance

Liability insurance coverage provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident

Multiple Choice

What is the normal ratio for liability insurance?

• 50/300/100

• 100/300/50

• 50/100/300

Information

In addition to liability insurance, you also will need to consider carrying two other types of insurance on your vehicle. Collision insurance pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole. Comprehensive insurance pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than a collision

Open Ended

Find the difference between collision insurance and comprehensive insurance.

Multiple Choice

Why do some companies offer both the insurance?

• Both of the situations can occur

• Some people require both

• To make more money

• All of these

Collision and comprehensive insurance

Both collision and comprehensive insurance may have a deductible clause. This is a clause in an insurance policy that requires the insured to pay a certain amount to cover repairs before the insurance company pays. For example, if your insurance policy states that you have a $500-deductible clause, this means that you pay the first $500 of the repair bill. If your total repair bill is $4,400, you have to pay $500 and the insurance company pays the remaining amount ($3,900 in this example).

Open Ended

Why does the insurance company have a deductible clause?

If your insurance policy states that you have a $500-deductible clause. If your total repair bill is $3400, What amount will the insurance company pay under the deductible clause?

Multiple Choice

Why do you pay for deductible clauses?

• to give insurance company an edge

• to make the insurer safe

• making the insurer responsible

• None of these

Open Ended

Plenary

Give the main points of the lesson.