NONBANK FINANCE 1GROUP 8: MIKE, BRIAN,JIMMY, BRIAN

INSURANCELife InsuranceProperty and Casualty InsuranceCredit Insurance

LIFE INSURANCE•1,000 life insurance companies in the U.S, they are split into stock companies and mutuals•Most are stock companies, but some of the largest ones are mutuals•The life insurance market never fails, so it is regulated only by the state in which it operates, death rates are highly predictable•Two kinds of life insurance policies: Permanent life insurance and temporary insurance•Life insurance companies have also started to deal with pension funds and annuities

PROPERTY INSURANCE•Open Perils•Named Perils•Most common incidents•Famous Recent Cases

CASUALTY INSURANCE•Third Party on Liability•Disability on Accident and Health•Material Damage

CREDIT INSURANCE•is a way for consumers to insure repayment of loans even if the borrower dies, becomes disabled, or loses a job.•There are 2 types of credit insurance:

• Business credit insurance• Consumer credit insurance

INSURANCE MANAGEMENTScreening, Premiums, Provisions, Fraud

Prevention, Deductibles, etc.

Insurance Management

•is a general term used to describe an insurance broker or services firm•The insurance industry has grown a lot in the past 10 years, offering many different insurances and products. The services offered by an insurance management company are designed to streamline this product offering and simplify matters for clients.

RIMS IMS

PENSION FUNDSDefined-Contribution PlanDefined-Benefit Plan

Fully FundedUnderfunded

Private Pension PlansPublic Pension Plans

PRIVATE PENSION PLANS•Background Information•ERISA• Pension Benefit Guarantee

Corporation (PBGC also called Penny Benny)• Problems with Penny Benny

•FYI

PUBLIC PENSION PLANS•Background Information•Social Security• Problems

•FICA•FYI

VideoState Farm Commercial