Business - Insurance

Question 1

Definition of Insurance

Answer 1

Protection against a loss you hope will not happen for example a car accident

Question 2

definition of assurance

Answer 2

Protection against a lot you know will happen

Question 3

The five principles of insurance

Answer 3

utmost good-faith

indemnity

insurable interest

contribution

subrogation

Question 4

Utmost good faith definition

Answer 4

You must tell all relevant information when filling out an application for insurance

Question 5

Indemnity definition

Answer 5

You cannot make a profit from insurance eg. you cannot insure your house for more than it is worth

Question 6

Contribution definition

Answer 6

When a risk is insured with two insurance companies, each insurance company will pay half of the compensation

Question 7

Insurable interest definition

Answer 7

You must benefit from its existence and suffer from its loss

Question 8

Subrogation definition

Answer 8

Passes the legal right of the insured over to the insurer to claim from a third-party who caused the loss

Question 9

The three types of motor insurance

Answer 9

third-party: third-party covers only the injuries or the damages to another person or their car. It does not cover the policyholder or their vehicle.

third-party fire and theft covers everything as the third-party but covers the injured person vehicle if set on fire or stolen.

Comprehensive - covers all damages and injuries, including the insured person

Question 10

what is PRSI?

Answer 10

by law, all employees must pay employee PRSI. it entitles the worker to disability illness maternity or jobseekers benefit