Assignment 8- Risk and Insurance Template

1) Visualize your home as you arrive at your front door and walk through your living room, kitchen,
bathroom(s), bedroom(s) and yards.

● As you visualize your home, explain 2 potential hazards that may cause an accident in
any of these areas.

● Also explain how you will correct each of the hazards.

● Example: In my living room, there is an electrical cord across the floor that someone
could trip over. I could move the cord, so it runs along the wall rather than across the
floor. Do not use this example!

● Each example must be at least 2 complete sentences.

a. In my kitchen, there are two batteries on the counter that a child or even children could
easily swallow. I can correct this hazard by picking up the batteries and installing them into an item
that could be of use.

b. As I walk through my house and into my backyard, I see a ladder placed on a wet,
slippery surface where someone can easily fall and get seriously hurt. To correct this hazard, I
place the ladder on firm, solid ground.

2.) Research 2 different types of insurance that are not life insurance, medical/health insurance,
homeowner’s/renter’s/property insurance, or vehicle insurance.

● Be sure to provide the website where you found your answers.

● Example: Kidnap insurance pays your ransom if you are kidnapped. Kidnap Insurance
could be important if I travel to exotic or dangerous destinations and my family cannot
afford to pay the ransom. https://www.investopedia.com/terms/k/kidnap-
insurance.asp Do not use this example!

● Provide 2 complete sentences to describe each type of insurance. Do not copy and paste
your answers from the website(s) where you found the information. Answers must be
in your own words.

a. Business insurance protects your business from financial damages that can result from
accidents, property damage, professional errors, workers compensation claims, etc.
Having coverage is important to minimize the negative impact of claims against your
business. https://www.cigconnect.com/types-of-insurance.html

b. Crop insurance is purchased by agricultural producers, including farmers, ranchers

and others to protect against the loss of their crops due to natural disasters, or the loss
of revenue due to drop of prices of agricultural commodities. The two general categories

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 of crop insurance are called crop-yield insurance and crop-revenue insurance.
https://www.cigconnect.com/types-of-insurance.html

3) Review “101 Health & Wellness Tips” in the Information section of the learning module. Think
about the health risks that you currently take.

● Describe 2 specific health-related risks you currently take.

● Provide a specific action you can take to reduce the health-related risk

● Example: I can stop texting and driving because I could cause an accident and harm
someone else or myself. I will turn off my phone when I’m driving. Do not use this
example!

● Each answer must be at least 2 complete sentences.

a. I can limit the number of sugary and caffeinated drinks I drink because it can affect my
overall physical well-being. I can cut down on the amount by choosing water as a
healthier alternative.

b. I can also start going to bed early to get a full night's rest since I can lose my ability to
concentrate and to excel in class. I am going to stick to a schedule that can improve my
chances of getting a good night's sleep.

4.) Review “Requirements for NM Motor Vehicle Insurance” in the Information section of the
learning module. The State of New Mexico requires an auto liability insurance policy (or surety
bond or cash deposit) for a minimum total coverage of $60,000. Refer to the website to fill in
the blanks.

$25,000 is coverage for bodily injury or death to one person in any accident.

$50,000 is coverage for bodily injury to or death of two or more persons in any one accident.

$10,000 is coverage for injury to or destruction of property of others in any one accident.

5.) According to the same “Requirements for NM Motor Vehicle Insurance” website, what
consequences would someone face if they do not have auto insurance and are responsible for
causing a car accident with property damage?
Is it legal in New Mexico to drive without auto insurance?

● Explain in at least 2 complete sentences. Do not copy and paste your answer from the
website. Answer must be in your own words.

Start Here 🡪 The consequences someone could face if they do not have auto insurance and are
responsible for causing a car accident with property damage is that the person can sue you for all of
the damages that person suffered from the accident. No it is not legal in New Mexico to drive without
auto insurance because the driver must maintain proof of continuous insurance throughout the
registration period.

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 6.) What are factors that affect the cost of paying for insurance.

● Explain why each factor affects the cost of Vehicle, Homeowner’s, and Life Insurance.

● Example: A cost factor for vehicle insurance may be the number of speeding tickets a
person has received in the past 2 years. An insurance company may consider this
person a higher risk for an accident. Do not use this example!

● Answers must be at least 2 complete sentences for each factor. Do not copy and paste
your answers from the website(s) where you found the information. Answer must be in
your own words.

a. Vehicle - A cost factor for vehicle insurance can be your driving record such as the
number of accidents you have been in. Your cost for car insurance will likely be higher than
someone with a clean driving record.

b. Homeowner’s - Another cost factor for homeowners insurance is the age of your home
and roof. Overtime they can become more susceptible to damage from weather or internal
deterioration which can cause rates to go up.

c. Life - Lastly, a cost factor for life insurance is your health. Healthy applicants with good
habits typically pay less. On the other hand, if you have certain health conditions, you may
need to pay more for coverage.

7) What are 2 ways to receive a discount on your vehicle insurance?

● Example: One way to receive a discount on my vehicle insurance is to shop around and get
three price quotes from different insurance companies. Do not use this example!

● Write at least 1 complete sentence for each discount. Do not copy and paste your answer
from the website(s) where you found the information. Answer must be in your own words.

a. A way to receive a discount on your vehicle insurance is to make sure to maintain a good
credit record.

b. Another way to receive a discount on your vehicle insurance is to reduce coverage on

older cars.

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