Business insurance chp9 Flashcards
what is motor insurance
Compulsory in Ireland, required by law, criminal offence to drive without it.
Third party
Minimum legal requirement for driving any motorised vehicle on public road. Covers injury to other person or damage to car or property caused by the insured driver. It does not cover policy holder on vehicle.
Third party fire and theft
Same thing as third party plus compensation for insured person if vehicle catches fire or is stolen
Comprehensive
(Most expensive) Benefits all parties and vehicles that suffer loss including insured person and vehicle.
No claims bonus
is a discount on insurance premium; rewards the insured person for not making any claims on the policy. Makes next years premium cheaper.
Loading
Is an extra amount added to the basic premium to cover increased risk
Subrogation
Insurer had a right to sue a third party for reimbursement
Indemnity
Security or protection against a burden (you should not get profit from insurance)
Insurable interest
You can only buy insurance for something that is yours
Insurance broker
Help household to get best type of insurance to meet their needs at the best price; they are paid commission
Agent
People who sell policies for a particular insurance company
Actuary
Calculates the premium that must be paid by the insurer, the fee takes into consideration the risk or loss occurring . Greater risk=higher premium
Loss adjuster
Investigate a claim and decide time compensation will be paid they also advise how much to pay e.g check if it is a genuine mishap
Proposal form
A form that is filled out by the person looking for insurance: it is like an application form for insurance. It must be filled out truthfully (utmost good faith.)
Policy
The document sent by the insurance company to inform the insured that they have been given insurance (rules?)
Policy excess
This is the amount that the insured must pay before compensation is paid by the insurance company
10 types of insurance
Home insurance (buildings cover +contents cover)
Personal accident insurance
Health insurance
Critical illness insurance
Holiday travel insurance
Mortgage protection insurance
Payment protection insurance (ppi)
Income/salary protection insurance
Mobile phone insurance
Pay related social insurance
What is pay related social insurance
By law, all employees must pay employee PRSI. It entitled the worker to illness, disability, maternity or jobseekers benefit, should they require them. This payment is deducted at source by employers.
what is assurance
Insurance for something that will definitely happen
What is PPI (payment protection insurance)
Your repayments on a loan for a certain period of time. Usually one year, will be covered with PPI if you suffer from an accident
DIRT meaning
Deposit Interest Retention Tax
AER meaning
Annual Equivalent Rate
exclusions
specific item or circumstance that is not covered by an insurance policy
Average clause
Applies into the cause of an under insurance and partial loss based on the principle of indemnity
insured value
________________
actual value x amount claimed
Under insurance
Meaning that the insurer item has not been measured for its full replacement value. As a result, the amount of compensation paid without enough to cover the loss.
i
Whole life policy
Pays compensation on the death of the insured person
Term policy
For a fixed time period - usually the duration of a mortgage or loan. Ir the insured person dies during the term or a loan or mortgage, any outstanding amount is paid the premium and cover finish at the mortgage
