Chapter 14~Insurance Premiums And Claims Flashcards
1
Q
Loading?
A
The amount added by the insurance company to your insurance premium because there is a greater likelihood of a loss occurring
2
Q
Compensation?
A
The money paid to you by the insurance company to help you repair or replace your items
3
Q
Assessor?
A
The person sent by the insurance company to inspect the damage and to calculate how much compensation should be paid to the person who suffered the loss
4
Q
4 factors considered when calculating the premium
A
- the value of the item
- the type of insurance
- length of time
- level of risk
5
Q
4 ways in which a person can obtain compensation
A
- cash
- replacement of item insured
- repair
- reinstatement
6
Q
Actuary?
A
The person who calculates the premium for the insurance company
