business insurance Flashcards
what is insurance
a promise given from an insurance company to replace financial losses
insurance ____ happen
might
assurance ____ happen
will
what is an insurance broker
someone whop will get the best price for you if you need something insured
what is comprehensive motor insurance
most expensive
loss,theft,damage
accidnetal damage done to another car
what is third party
cheapest
damage done to a veichle or property,the person does not own the car
what is premium
the price paid for insurance
what does indemnity mean
the insured cannot profit
what does utmost good faith mean
insured must tell truth
what is insurable interest
insured must gain existence of item and suffer financially
what is subrogation
once the compensation has been claimed, must be returned to insured
what is contribution
item is insured with more than 1 company, comapnies will divide the cost
what is proximate cause
if someone insures house for fire and it is burgled they cannot claim the insurance money
what is direct/progressive tax
the more you earn the more you pay
what is inderict/regressive tax
tax on goods and services, everyone has to pay the same
