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JC Business > Chapter 13 - Insurance > Flashcards

Chapter 13 - Insurance Flashcards

1
Q

What are the 6 steps involved in taking out insurance?

A
  1. Calculate value of the item
  2. Contact an insurance company/broker
  3. Complete a proposal form
  4. Pay premium
  5. Company sends out insurance policy and certificate of insurance
  6. Receive renewal note
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2
Q

Insurance broker

A

Person who works for themselves and sells insurance for a number of different companies. Works on commission

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3
Q

Insurance agent

A

Works for one insurance company. Gets a basic salary and commission

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4
Q

Proposal form

A

Application form for insurance

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5
Q

Insurer

A

Providing insurance company

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6
Q

Premium

A

Fee paid for insurance

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7
Q

Insurance policy

A

Written document from insurance company containing all the details of the insurance contract

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8
Q

Insured

A

Person who took out insurance

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9
Q

Certificate of insurance

A

Short, written summary of the main points of an insurance policy

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10
Q

Cover note

A

Letter sent by the insurance company proving insurance is in place

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11
Q

Renewal notice

A

A written reminder from the insurance company saying the next premium must be paid

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12
Q

Grace period

A

A period of time when you have not yet payed your next premium but you are still insured

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13
Q

What is life assurance?

A

Insurance to pay bills should one of the household’s income earners die

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14
Q

What is endowment assurance

A

Special policy used as a way of saving. Works the same as normal life assurance but when the person reaches a certain age they cash in the policy themselves

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15
Q

Surrender value

A

Value of life assurance when turned into cash

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16
Q

What is temporary life assurance?

A

Insurance taken out on a loan incase you should die before fully repaying the loan

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17
Q

Describe home insurance

A
  • Has two parts: building and contents insurance

* Cost of premium could be reduced due to alarms, window locks, neighbourhood watch ect

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18
Q

Third Party Fire and Theft

A

Minimum type of car insurance. If you have an accident, the insurance company will only pay for the other persons injuries and damage. However you do get compensation if your car is stolen or damaged by fire

19
Q

Comprehensive car insurance

A
  • Most expensive

* Everyone in the accident is covered

20
Q

No claims bonus

A

A discount on your car premium if you had no accidents in the last year

21
Q

Health insurance

A

Pays for your hospital bills should you fall ill

22
Q

Salary protection insurance

A

Supplies you with a monthly income in case you fall ill and can’t work

23
Q

Personal accident insurance

A

Insurance in case you have a personal accident for example breaking a leg

24
Q

PRSI

A

By law everyone must pay a percentage of their income into a fund. Employees will be paid a sum of money out of the fund if any of the following occur:

 - Unemployment
 - Maternity leave and not paid by the employer
 - Become ill and are unable to work
 - Reached retirement age
25
Q

Travel insurance

A

The insurance company will pay for any bad things that happen while you’re travelling

26
Q

What are the 5 rules of insurance?

A
  1. Insurable interest
  2. Upmost good-faith
  3. Indemnity
  4. Subrogation
  5. Contribution
27
Q

All risks fire ins

A

Covers loss or damage to property caused by fire

28
Q

Consequential loss insurance

A

Pays for lost profits and pays for certain expenses should a business close down due to fire

29
Q

Burglary/theft insurance

A

Owner will receive money if stock, cash or equipment is stolen

30
Q

Transit insurance

A

In case cash or stock is stolen or damaged whilst being transported to or from the premises

31
Q

Employers liability insurance

A

Insurance company will pay money to any employees who are injured or killed whilst working

32
Q

Product liability insurance

A

Insurance company will pay money to any customers who were injured or killed due to faulty goods or services

33
Q

Fidelity guarantee insurance

A

Insurance company will pay business owner if any employee steals from the firm or causes business to lose money

34
Q

Insurance

A

Protection against something that might happen

35
Q

Assurance

A

Protection against something that will definitely happen

36
Q

Non Insurable risk

A

Sometimes the insurance company won’t insure something because it would cost them too much to replace

37
Q

Policy excess

A

When you have to pay for some of the loss yourself

38
Q

What does PRSI stand for?

A

Pay Related Social Insurance

39
Q

Public Liability Insurance

A

Insurance company will pay money to any member of the public who is killed or injured on premises

40
Q

Insurable interest

A

You must benefit from having the item and suffer from its loss

41
Q

Utmost Good Faith

A

You must state truthfully while filling out a proposal form

42
Q

Indemnity

A

You cannot make a profit from insurance

43
Q

Subrogation

A

Say your car gets stolen and you receive compensation. If the car is found it now belongs to the insurance company. If you want it back, your must pay for it

44
Q

Contribution

A

If you have something insured with more than one company, each company will only pay part of the compensation

JC Business (30 decks)

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