Download 11 Lesson 18.4 Types of Business Insurance Goals

Chapter 18
Credit and
Insurance
©2008 Thomson/South-Western
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Chapter 18
Credit and Insurance
Lesson 18.1
Credit Principles and Practices
Goals
 Describe three types of credit plans used by
businesses.
 Identify several types of financial transaction
cards and the main uses of each type.
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Chapter 18
Credit and Insurance
Credit Systems
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Accepting major credit cards
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Creating a private credit card system
Consumer credit plans
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Merchant account provider
Installment credit
Revolving credit
Chapter 18
Credit and Insurance
Financial Transaction Cards
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Bank and nonbank credit cards
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Co-branded credit cards
Affinity credit cards
Debit cards
Smart cards
Chapter 18
Credit and Insurance
Lesson 18.2 Managing Credit
Goals
 Identify the information on which decisions
about credit applications is based and how
that information is obtained.
 Describe the steps in collecting unpaid
accounts.
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Chapter 18
Credit and Insurance
Determining Credit Standing
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The four Cs of credit
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Sources of credit information
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Character
Capacity
Capital
Conditions
The point system
Applicants
Credit agencies
Chapter 18
Credit and Insurance
Federal Laws and the Credit Card
Industry
Equal Credit Opportunity Act
Truth-in-Lending Law
Fair Credit Reporting Act
Fair Debt Collection Practices Act
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Chapter 18
Credit and Insurance
Analyzing Credit Sales
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Accounts receivable relative to credit sales
Aging of accounts
Percentage of delinquent accounts relative to
total outstanding accounts
Chapter 18
Credit and Insurance
Lesson 18.3 Insurance Principles
Goals
 Discuss several ways that businesses can
attempt to reduce risks.
 Define important insurance terms.
 Describe several noninsurable risks facing
businesses and how managers can respond
to each.
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Chapter 18
Credit and Insurance
Basic Insurance Concepts
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Insurance rate — amount an insurance company
charges a policyholder for a certain amount of
insurance
Cancellation of insurance
Insurable interest in property — possible financial
loss the policyholder will suffer if the property is
damaged or destroyed
Deductible — amount the insured party pays for a
loss before the insurance company pays anything
Chapter 18
Credit and Insurance
Lesson 18.4
Types of Business Insurance
Goals
 Describe several types of property and
vehicle insurance that businesses need.
 Identify the types of insurance businesses
should consider carrying on the people
associated with the business.
 Describe additional insurance businesses
may need to cover special types of risks.
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Chapter 18
Credit and Insurance
Property Insurance
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Fire insurance
Burglary and robbery
insurance
Business income
insurance
Transportation
insurance
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Vehicle insurance
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Collision insurance
Comprehensive
insurance
Vehicle liability insurance
Medical payments
insurance
Chapter 18
Credit and Insurance
Other Types of Insurance
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Insuring people
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Other business insurance needs
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Health and disability insurance
Life insurance
Business operations — liability insurance,
malpractice insurance, bonding
Insurance for international operations
Chapter 18
Credit and Insurance