2. The Non-life Insurance Market Flashcards
A … company is a company that instead of transferring the risk to an insurer, they set up a fund from which they can pay claims.
captive insurance
After initial assessment the loss adjuster will do three things?
- Obtain quotes
- Find contractors
- Liaise with police
In terms of the …, Lloyds must appoint a representative and deputy representative, whose duty it is to give the Registrar a list of names and addresses of Lloyd’s correspondents in South Africa, and act as defendant or respondent in court proceedings.
Short Term Insurance Act
Insurance has two fundamental characteristics namely?
- The transfer of financial consequences from an individual to a group.
- The sharing of losses on some equitable basis by all members of the group.
Lloyd’s maintains a … in South Africa as extra security for its South African policyholders.
Trust Account
Self-insurance is when the client … for his own account.
accepts part or all of the risk
Three other players in the short term insurance market are:
- Loss adjusters
- Motor assessors
- Risk managers
The Financial Intermediaries Association’s main purpose is to … the common interest of it’s members.
represent, protect, promote and further
The four advantages of multi-peril policies are:
- there is only one renewal date
- there is one premium
- it is cheaper to issue
- there is only one document
The initial role of the loss adjuster is to?
assess the damage, find entry point or method if theft, get supporting documentation
The operations of Lloyd’s are …
worldwide
The four players in the short term insurance market are:
- Buyers
- Intermediaries
- Insurers
- Re-insurers
The short term insurance market consists off two pillars namely?
- Personal lines
2. Commercial lines
The South African Insurance Association (SAIA) has two functions namely:
- Representing the interest of the short term industry to government.
- Promoting co-operation between the public and short term insurers.
The … is someone that will inspect you car after an accident and determine whether a claim is payable or not. He could from time to time also negotiate with panel-beaters on your behalf.
motor assessor
The {{c1::P&I Club}} operates in the marine market and insures:
- liabilities for cargo
- liabilities for crew and passengers
- liabilities to third parties
The … is the best known form of mutual indemnity association.
Protection And Indemnity Associations (P&I Club)
Three advantages of self-insurance are:
- as the fund grows so does the percentages for self-insurance that results in further premium discounts.
- the premiums does not increase with other people’s claims.
- there is a very strong incentive to reduce claims and control losses.
Three disadvantages of self-insurance are:
- a catastrophic loss would deplete the fund.
- capital could be tide-up that could have been used for business development.
- the basic principle of spreading the risk is not adhered to.
… is when you are willing to pay for losses up to a certain amount. You will therefore get a discounted premium.
Catastrophe cover
… is an insurance policy where more than one individual are insured on the same policy.
Collective insurance
… is among the largest property and liability insurers (including reinsurance) in South Africa.
Lloyd’s
… is not and insurance company, but in fact an association of underwriters.
Lloyd’s
… are different from a mutual company in that the association only accepts business from members of a particular trade.
Mutual Indemnity Associations
