47 Fraud and Protection

1. 47 Fraud and Protection

2. Warranties • Warranties guarantees that a manufacturer or similar party makes regarding the condition of its product. • It also refers to the terms and situations in which repairs or exchanges will be made in the event that the product does not function as originally described or intended.

3. Implied Warranty • Under a sales contract, whether written or oral, there is a guarantee that the item sold is fit for the purpose intended.  • This guarantee is enforced by law and is added to any expressed warranties that are provided at the time of sale.  • These implied warranties exist to protect consumers who might otherwise pay for products that are not as represented by the seller.

4. Full Warranty • A full warranty is a warranty that completely covers the repair or replacement of any defect in a consumer product. • State and federal laws require that if the company making the warranty will repair the item, it must be fixed within a reasonable time and it must be reasonably convenient to get the item to and from the repair site. • Many stores will offer a short full warranty of their own (thirty to ninety days).

5. Limited Warranty • A limited warranty is much more common. • Not surprisingly, it covers less. • It may cover only parts and not labor or the dealer warranty on a used car may provide that the cost of repairs be split fifty-fifty for the first thirty days.

6. Insurance • Insurance is a contract in which someone receives financial protection or reimbursement against losses from an insurance company. • The company pools clients' risks to make payments more affordable for the insured.

7. Liability • Liability Insurance is any type of insurance policy that protects an someone from the risk that they may  be sued and held legally liable for something such as malpractice, injury, or negligence.  • Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. • Intentional damage and contractual liabilities are typically not covered in these types of policies.

8. Collision • Collision is a type of auto insurance coverage. • Collision Insurance will reimburse the insured for any damage sustained to their personal automobile that is due to the fault of the insured driver. • This type of insurance is often added as an extension of a basic policy.

9. Personal Property • Personal Property Insurance is a policy that provides payment to the owner or renter of a structure and its contents, in the event of damage or theft. • Property insurance can include homeowners insurance, renters insurance, flood insurance, and earthquake insurance. • Personal property is generally covered by a homeowners or renters policy, unless it is of particularly high value, in which case it can usually be covered by purchasing an addition to the policy called a "rider".

10. Homeowners and Flood • Homeowners insurance is a form of property insurance designed to protect an individual's home against damages to the house itself, or to possessions in the home.  • Homeowners insurance also provides liability coverage against accidents in the home or on the property. • Flood Insurance protects real property owners from water damage to the structure and/or contents of their property.

11. Medical Insurance • Medical Insurance is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured. • Medical insurance can either pay back the insured for expenses incurred from illness or injury or pay the care provider directly. • Medical insurance is often included in employer benefit packages as a means of enticing quality employees.

12. Medicare • Medicare is a federal health program that subsidizes people who meet one of the following criteria: • 1. An individual over the age of 65 who has been a U.S. citizen or permanent legal resident for five years. • 2. An individual who is disabled and has collected Social for a minimum of two years. • Medicare helps out people at a time in their lives when they may have serious health problems but lack the for treatment.

13. Medicaid • Medicaid is a joint federal and state program that helps low-income individuals or families pay for the costs associated with long-term medical and custodial care, provided they qualify. • Although largely funded by the federal government, Medicaid is run by the state where coverage may vary.

14. Federal Deposit Insurance Corporation (FDIC) • The FDIC is a U.S. program insuring deposits in the U.S. against bank failure. • The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices during the Great Depression. • The FDIC will insure deposits of up to US$250,000 per institution as long as the bank is a member bank.

15. Obamacare • The Patient Protection and Affordable Care Act (PPACA), commonly called Obamacare, is a federal law signed into law by President Obama in 2010. • It represents the most significant overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 • PPACA is aimed primarily at decreasing the number of uninsured Americans and reducing the overall costs of health care.

16. Deductibles • A deductible is the amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs. • For example, if you get into an accident and your medical expenses are $2,000 and your deductible is $300, then you would have to pay the $300 out-of-pocket first before the insurance company paid the remaining $1,700.  • However, if your accident only resulted in $300 in medical expenses, then you would pay the $300 deductible and the insurance company would pay nothing.

17. Insurance Fraud • Insurance Fraud is an illegal act on the part of either the buyer or seller of an insurance contract. • Insurance fraud from the seller includes selling policies from non-existent companies, failing to submit premiums and churning policies to create more commissions. • Buyer fraud includes exaggerated claims, falsified medical history, post-dated policies, faked death or kidnapping, murder and much more.

18. Identity Theft • The crime of obtaining the personal or financial information of another person for the sole purpose of assuming that person's name or identity in order to make transactions or purchases. • Once they have the information they are looking for, identity thieves can ruin a person's credit rating and the standing of other personal information.  • Many types of identity theft can be prevented. One way is to continually check the accuracy of personal documents and promptly deal with any discrepancies.

19. Credit Monitoring Service • A credit monitoring service is offered by many credit card issuers and the three main credit bureaus that involves monitoring credit activity for cardholders. • Customers who sign up for such a service pay a monthly fee and receive insurance coverage that will pay for losses (up to $1,000,000 in some cases) in the event of ID theft. • Additional features of some services include regular access to credit scores and alerts regarding any new or suspicious credit activity.

20. Welfare Reform • Welfare reform refers to improving how a nation helps poor people. • In the United States, the term was used to get Congress to enact the Personal Responsibility and Work Opportunity Act, which further reduced aid to the poor, to reduce government deficit spending without printing more money.

21. Bankruptcy • Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. • All of the debtor's assets are measured and evaluated, then the assets are used to repay a portion of outstanding debt.  • Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations obtained prior to filing for bankruptcy.

22. Tarp Money • Troubled Asset Relief Program • Tarp is a government program created in an attempt to curb the ongoing financial crisis of 2007-2008. • The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up bank debt. • Opponents against TARP call it a “bailout”.

23. Better Business Bureau (BBB) • The Better Business Bureau (BBB) aims to promote ethical business practices, leading to an environment where buyers and sellers can operate under a common understanding of trust. • Through encouraging better practices on the part of the consumer and the business and setting proper marketplace standards, the BBB provides educational material regarding general and specific desirable business practices.