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The policyholder and any family members listed on the policy are generally covered by bodily injury liability coverage, no matter what vehicle they are driving, provided they have permission to be behind the wheel. Alternate name: bodily injury liability How Auto Insurance Bodily Injury Coverage Works Auto insurers often sell bodily injury coverage in terms of its maximum payouts. Policies will often list two numbers that refer to the thousands of dollars the insurer will pay toward bodily injury coverage per person and per accident, respectively....

This strategy involves making homeowners believe the supposed changes will negatively affect property values or quality of life. Blockbusters then may resell or rent the properties with larger profit margins. Historically, the practice of blockbusting—common in many major U.S. cities just after World War II—often leveraged racial prejudice and fear among White homeowners to make them believe their neighborhoods and property values would be negatively affected by the arrival of a large number of Black residents....

Unlike bankruptcy, you still pay some (or all) of your debts when you restructure. You just have more lenient terms. Creditors are often willing to work with you on restructuring your debt because they will receive more money than if you filed for bankruptcy. You can restructure almost any type of debt, including credit cards, student loans, mortgages, and auto loans. Example of Debt Restructuring Say you’re falling behind on your mortgage payments....

In Ethereum network slang, Gwei is also sometimes referred to as shannon, after American mathematician and computer scientist Claude E. Shannon. Shannon is credited with laying the foundation for information theory. But Gwei is not the only measure of small amounts of Ether. Here’s how it stands in the hierarchy of Ether units: Depending on the transaction, you may be able to pay more Gwei for a faster transaction or less Gwei for a slower transaction....

What Is Indemnification? Indemnification is the act of being compensated by your insurer for a loss that restores you as closely as possible to your financial position before the loss. “Indemnity” is a similar term you might see that also has the same overall meaning. Your insurer agrees to take on losses stemming from covered accidents or property damage when you’re a policyholder. Instead of you paying out of pocket for liabilities or property replacements, the insurance company picks up the tab to reestablish your financial standing to a state similar to what it was before the incident....

Having these facts gives the investor an edge when it comes to buying or selling shares. Few others have that same edge, so it creates an unfair advantage. In most cases, the trader must be someone with a fiduciary duty to another person, institution, corporation, partnership, firm, or entity. Many people acting in the market have such duties, including brokers or other agents who make trades on a client’s behalf....

Since this could lead to the intentional destruction of property or even murder, insurers require that you have an interest in maintaining the item or life of whatever is being insured. Common Examples of Insurable Interest There are a number of instances in which you might have an insurable interest in a thing or person in your life. These include insurable interests in Property: If you have a car,a home, a boat, jewelry, or any other piece of property that you have a financial interest in, you have an insurable interest in that property....

Long-term disability insurance does not provide insurance for work-related accidents or injuries that are covered by workers’ compensation insurance. But, they do cover an employee in the event of a personal accident such as a car accident or a fall. The Shortfall in Long Term Disability Coverage “In 2018, 42% of private industry workers had access to short-term disability insurance plans and 34% to long-term plans. Twenty-six percent of state and local government workers had access to short-term coverage and 38% to long-term benefits....

The History of the Medicare Program The Medicare program and its corresponding tax have been around since 1965, when President Lyndon Johnson signed the Medicare and Medicaid Act, also known as the Social Security Amendments, into law. The program was initially designed to provide health care benefits to senior citizens and to low-income individuals, but the Social Security Amendment of 1972 expanded the program to cover people with permanent disabilities and end-stage renal disease....

You’re typically eligible for recoverable depreciation if you have an RCV policy. To better understand recoverable depreciation, here’s a closer look at ACV and RCV. Actual Cost Value vs. Replacement Cost Value Your ACV is the cost to replace your insured property minus deductions for depreciation. Depreciation is an item’s loss in value due to age and normal wear and tear. This means that if you have an ACV policy, insurers reimburse you for the covered item’s depreciated value minus your deductible....

Alternate name: Replacement cost value, replacement cost coverageAcronym: RCV In the event of a loss, insurers may use this method to determine the damaged property’s market value and how much it will cost to replace it entirely. You are not reimbursed for the depreciation of the old or damaged asset. Example of Replacement Cost If your house was damaged by a falling tree, depending on your homeowners insurance policy, your insurance company might offer replacement cost value (RCV) for your home....

How Shareholder Wealth Maximization Works When business managers try to maximize the wealth of their firm, they are actually trying to increase the company’s stock price. As the stock price increases, the value of the firm increases, as well as the shareholders’ wealth. Shareholder wealth maximization is a principle of corporate governance that sets one primary goal for business managers. Who owns a corporation? Shareholders do. These are the individuals, businesses, and institutions that have an ownership interest in a company after purchasing shares of that company’s stock....

How Does Being Tax-Exempt Work? Tax exemptions are essentially an exception to a taxation rule from a government. If something is tax-exempt, then it is not subject to taxation, or it’s subject to a lower tax rate or only partial taxation. Tax exemptions can apply to a number of situations. For example, income from federal government bonds is generally exempt from state and local income taxes (while income from state and local bonds is generally exempt from federal income tax)....

When you’re about to file your tax return, it’s too late to adjust your income because the tax year is already behind you. But if you plan ahead and understand what strategies there are for reducing taxes owed, you can earn tax breaks in the future. Tax planning begins with identifying your AGI. You can determine your AGI by completing IRS Schedule 1, which walks you through the steps. The form tallies up all of your anticipated sources of income in Part I, other than wages or salaries from which taxes are already withheld....

While this program is no longer available, you may still qualify for a state tax credit to buy a first home, depending on where you live. The Biden administration has also proposed a new homebuyer tax credit that could make purchasing a home easier in the future. What Was the First-Time Homebuyer Credit? The first-time homebuyer credit was introduced as part of the 2008 Housing and Economic Recovery Act. HERA was a comprehensive piece of legislation designed to spur economic growth in the wake of the financial crisis....

Definition and Examples of the Market Maker Spread To understand the market maker spread, it helps to first understand more how market makers work. Buying and selling securities such as stocks may seem straightforward, but there’s a lot to it. If you want to buy stock, you need to find a seller, and vice versa. But it’s not always easy to find another party willing to transact with you at the exact moment you want to buy or sell....

Let’s take a closer look at what the national savings rate is and how it works. Definition and Examples of the National Savings Rate According to the Bureau of Economic Analysis’ U.S. National Income and Product Accounts (NIPA) metric, national savings are the portion of income that is set aside rather than spent on consumption or related purposes. The NIPAs are compiled quarterly by the Bureau of Economic Analysis (BEA) and report income and savings for the U....

Derivative contracts, such as futures and options, derive their value from the price movements an underlying asset. They can be used to speculate or hedge investment bets. Futures and options contracts are agreements to exchange underlying asset at a future date and price. The date outlined in the contract is called the expiry date. Triple witching occurs when three types have expiry dates scheduled for the same day. Typically, this phenomenon occurs on the third Friday of the last month in a quarter....

How Does Wage-Push Inflation Work? Wage-push inflation can occur for a few reasons, in theory. One is due to unions negotiating set wage increases at fixed intervals for their members. When unions negotiate higher wages for their members, this can push up the cost of the final goods at retailers, which could cause inflation. Another cause of wage-push inflation is a new industry that may increase wages significantly to attract talent....

Designed for college students, student cards may come with benefits and rewards. On the other hand, secured cards are for anyone starting (or restarting) a credit journey—particularly those who can’t qualify for a more traditional credit card—and don’t tend to offer bonuses for new cardholders, cash-back rewards, or other student-friendly perks. But what are the differences, and how can you decide which card to apply for? What Is a Student Credit Card?...