Business -insurance

Question 1

insurance

Answer 1

a form of financial protection against a possible loss

Question 2

insured

Answer 2

someone who purchases insurance

Question 3

insurer

Answer 3

the insurange company that agrees to cover a risk in return for a fee

Question 4

compensation

Answer 4

money paid from an insurer to the insured when or if they suffer an insured loss

Question 5

insurance policy

Answer 5

sets out the details for types of losses insured

Question 6

risk pooling

Answer 6

many people pay for insurance so insurance company can afford to pay compensation

Question 7

principle of insurance

Answer 7

insurable interest
utmost good faith
indemnity
contribution
subrogation

Question 8

insurable interest

Answer 8

you must benefit from something or suffer financially from its loss to insure and item

Question 9

utmost good faith

Answer 9

all material facts relating to the policy must be inclosed to the insurance company

Question 10

indemnity

Answer 10

a profit cannot be made from insurance

Question 11

subrogation

Answer 11

once an insurance company has paid compensation on an insured item the right of ownership passes to the insurance company

Question 12

contribution

Answer 12

when the same risk is insured by more than one insurance company they will divide the claim

Question 13

types of insurance

Answer 13

motor insurance
life assurnace
personal insurance
property insurance

Question 14

types of motor insurance

Answer 14

third party
third party fire and theft
comprehensivety

Question 15

types of personal insurance

Answer 15

personal accident insurance
health insurance
travel insurance

Question 16

health insurance

Answer 16

cost of gp appointments and hospital procedures

Question 17

personal accident insurance

Answer 17

loss of earnings and cost of treatment if person is unable to work due to injury

Question 18

travel insurance

Answer 18

loss or theft of items or cancellation of holidays

Question 19

types of property insurance

Answer 19

buildings insurance
home contents insurance

Question 20

building insurance

Answer 20

protects the damage done by fire water or break in

Question 21

home contents insurance

Answer 21

loss of home contents due to fire water damage and so on

Question 22

life assurance

Answer 22

term policy
whole life policy

Question 23

term policy

Answer 23

provides cover for morgageincase the insured dies

Question 24

whole life policy

Answer 24

pays compensation to dependants of the insured in death

Question 25

proposal form

Answer 25

application when purchasing insurance

Question 26

loading

Answer 26

extra money added to basic premuim to cover increased risk

Question 27

deductions

Answer 27

money taken off basic premium when risks are lowered

Question 28

no claims bonus

Answer 28

a discot given if no past claims have been made

Question 29

average clause

Answer 29

if you underinsure an item and make a claim your insurance company eill not pay full compensation

Question 30

underinsure

Answer 30

when someone fails to insure their assets for the full correct value insure the item for less than its worth

Question 31

formula for average clause

Answer 31

insured value/ acual value x amount claimed

Question 32

benefits of insurance

Answer 32

provides emplayoment buys peace of mind repair or replace items financial secutity

Question 33

drawbacks of insurance

Answer 33

high cost non insurable risks fraud