7. Answer the following questions using the information found at http://www.ambest.com/ratings/guide.pdf
https://www.forbes.com/advisor/life-insurance/am-best-ratings/
a) What ratings must an insurance company have to be considered “secure”? - A+ to B+ b) What does it mean if a company’s rating has a “u” next to it? - Under review with positive implications, review with negative implications, or under review with developing implications. c) What does it mean if a company’s “rating outlook” is negative? - Insurance company has a poor ability to meet their ongoing insurance obligations. Financial strengths are vulnerable to adverse changes in underwriting and economic conditions.
8. Using the Web site https://www.insurance.com/home-and-renters-insurance/home-
insurance-basics/condo-insurance-how-much-is-enough-.html
, answer the following questions:
a.
You own a condo. You have purchased your fiancé a large diamond engagement ring. Is it covered? If so, what should you know about the coverage?
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You also need personal property coverage. It can be covered in full if you have a scheduled endorsement. This is also called a personal article floater. A floater insures a specific item, like the wedding ring, for its appraised value. You do have to pay extra to ensure higher value items but there are advantages. If the ring is appraised at $15,000, the insure pays $15,000 if its lost or stolen- with no deduction for depreciation and no deductible. b.
You have purchased a condo. Do you need to buy flood insurance? - Only if you live in a FEMA-designated flood zone. 9. Go to http://health.usnews.com/health-news/health-insurance/articles/2014/09/26/5-
health-insurance-mistakes-costing-you
, describe the five health insurance mistakes costing you. 1. You focus on just your monthly insurance bill. Depending on medical needs, it may be less expensive in the long run to purchase a plan that costs more monthly but covers more
out-of-pocket costs. 2. You don’t ask if your doctor is in-network. Always call the insurance company and the
provider to confirm that the provider is, in fact, in network before going for care. 3. You don’t check your plans medication list. Make sure to check your health plan’s list of drugs. Always call to confirm coverage. Some medication may need pre-authorizations
before filing the prescription and before it is paid for. 4. you don’t know the difference between prevention and intervention. Be clear about the purpose of your visit when you make an appointment with your doctor and ask about the nature and cost of any follow-up visits.
