Insurance

1
Insurance 101Terminology

• Presented for Wisconsin 4-H Youth Development
  Staff

Youth Emphasis March 2005
2
Insurance Policy

• A written contract for insurance between an
  insurance company and policyholder stating
  details of coverage.

3
Primary Insurance

• The insurance policy that pays first when you
  have a loss that's covered by more than one
  policy.

4
Secondary Insurance

• This insurance is utilized after the primary
  insurance has been exhausted.
• For example if you are in an automobile accident
  with your personal vehicle, claims would be made
  on your personal automobile policy until the
  limits are exhausted and then on county insurance
  until those limits are exhausted.

5
Insured

• The party who stands to benefit from an insurance
  policy.
• The party insured.

6
Property Damage

• Covers damage to or loss of policyholders
  (insureds) property.

7
Liability

• Legally bound or responsible.
• Something for which one is liable an obligation,
  a responsibility, or a debt.

8
Law

• Civil
• The body of laws of a state or nation dealing
  with the rights of private citizens.
• Tort
• The body of law governing negligence,
  intentional interference, and other wrongful acts
  for which civil action can be brought, except for
  breach of contract, which is covered by contract
  law.

9
Liability Insurance

• Insurance which pays and renders service on
  behalf of an insured for loss arising out of
  their responsibility to others imposed by law or
  assumed by contract.

10
General Liability Insurance

• Designed to protect business owners and
  operators from a wide variety of liability
  exposures. Exposures could include liability
  arising from accidents resulting from the
  insured's premises or operations, products sold
  by the insured, operations completed by the
  insured, and contractual liability.

11
Liability Insurance

• Volunteer (Agent)
• This insurance is designed to cover a
  volunteer's actions that may cause physical
  injury to another, or damage to another's
  property. If the injured party feels that their
  injury or the damage to their personal property
  resulted from the negligence of the volunteer,
  the volunteer may be sued. When this occurs, the
  volunteer will need to defend himself or herself,
  and if judged negligent will be responsible for
  the financial judgment incurred.

12
Liability Insurance

• Automobile Insurance
• A form of insurance that protects against losses
  involving autos.
• Examples of coverage types include bodily injury
  liability, property damage liability, medical
  payments, and collision and comprehensive
  coverage for physical damage to the insured's
  vehicle.

13
Liability Insurance

• Umbrella Coverage
• Coverage for losses above the limit of an
  underlying policy or policies such as homeowners
  and auto insurance.
• While it applies to losses over the dollar amount
  in the underlying policies, terms of coverage are
  sometimes broader than those of underlying
  policies.

14
Liability Insurance

• Directors Officers Liability Insurance (D O)
• Covers directors and officers of a company for
  negligent acts or omissions and for misleading
  statements that result in suits against the
  company, often by shareholders.

15
Negligence

• Failure to use that degree of care which an
  ordinary person of reasonable prudence would use
  under the given or similar circumstances.
• A person may be negligent by acts of omission or
  commission or both.

16
Indemnify

• Provides financial compensation for losses.

17
Hold Harmless

• A contract by which one partys legal liability
  for damages is, in effect, assumed by the other
  so as to hold the first party without
  responsibility for any damage arising out of the
  transaction.

18
Personal Injury

• Injury to an individual's body, mind, or
  emotions.
• In some instance of a personal injury an
  individual or a company may be liable for the
  resulting suffering that the personal injury
  caused.
• Personal injuries can occur out of negligence, an
  intentional infliction of harm, or the injuring
  of another person despite any type of negligence
  or intent.

19
Product Liability

• A section of tort law that determines who may
  sue and who may be sued for damages when a
  defective product injures someone.

20
Limitations or Exclusions

• Limitations are exceptions to coverage and limits
  of coverage as contained in an insurance
  contract.
• Exclusions are a contractual provision that
  denies coverage for certain perils, persons,
  property, or locations.

21
Endorsement

• This is a clause under which the stated coverage
  of an insurance policy may be altered.
• A provision added to an insurance contract
  altering its scope or application.

22
Certificate of Insurance

• Written evidence that an individual is a
  participant in an insurance program or employee
  benefit plan.
• The certificate confirms that a master policy has
  been issued and may be reviewed.
• This confirmation is good for the day the
  certificate is issued.

23
(No Transcript)
24
Homeowners

• This insurance covers the house, the garage and
  other structures on the property, as well as
  personal possessions inside the house such as
  furniture, appliances and clothing, against
  damage to or loss of. The extent of the perils
  covered depends on the type of policy.
• The liability portion of the policy covers the
  homeowner for accidental injuries caused to third
  parties and/or their property.

25
Accident Health Insurance

• This is insurance against injury or death because
  of an accident to individuals named on the
  policy.
• Accident insurance policies cover death or
  dismemberment, as well as hospital coverage and
  transportation to a hospital.
• Persons without accident insurance may find
  themselves responsible for a lifetime of
  round-the-clock medical care, expensive
  surgeries, and loss of wages.

26
Event Insurance

• Event insurance can be purchased for a particular
  event, such as a concert, a sports event, or even
  a wedding.
• Event insurance policies could cover anything
  from liability associated with your event, to a
  singer's tonsillitis that would force the
  cancellation of a concert to an unexpected
  blizzard that would postpone a golf tournament or
  a power outage that would force the rescheduling
  of a computer show.

27
Self-Insured

• The concept of assuming a financial risk oneself,
  instead of paying an insurance company to take it
  on.
• Large firms, and some counties, often
  self-insure frequent, small losses such as damage
  to their fleet of vehicles or minor workplace
  injuries.

28
Wisconsin County Mutual Insurance Corp
Member Counties
Adams Ashland Barron Bayfield Buffalo Burnett Calumet Clark Columbia Door Douglas Dunn Florence Forest Green Green Lake Iowa Iron Jackson Jefferson Juneau Kewaunee Lafayette Langlade Lincoln Marinette Marquette Menominee Milwaukee Monroe Oconto Oneida Ozaukee Pepin Pierce Polk Portage Price Richland Rusk Sauk Sawyer Shawano Sheboygan Taylor Trempealeau Vernon Vilas Walworth Washburn Washington Waupaca Waushara Winnebago Wood
29
Wisconsin Municipal Mutual Insurance Company

• Member Counties
• Brown La Crosse
• Chippewa Manitowoc
• Dane Marathon
• Dodge Outagamie
• Eau Claire St. Croix
• Kenosha Waukesha

30
Remaining Counties

• Crawford
• Fond du Lac
• Grant
• Racine
• Rock

31
Information Prepared by

• Dave Pulda, Risk Manager, UW System Office of
  Safety and Loss Prevention
• Debbie Beich, Risk Management Specialist,
  UW System Office of Safety and Loss Prevention