insurance

Question 1

what is insurance

Answer 1

offers financial protection against certain losses and tries to put the insured person in the same financial position as before

Question 2

whats in insurance policy

Answer 2

sets out details of the types of losses covered and the amount of compensation to be payed

Question 3

what is compensation

Answer 3

financil payment made to an insured person if they suffer an insured loss

Question 4

what is a premium

Answer 4

amount payed by the insured person to an insurer in return for providing insurance cover for a particular risk

Question 5

what are the 5 principles of insurance

Answer 5

-insurable intrest
-utmost good faith
-indemnity
-subrogation
-contribution

Question 6

what is insurable intrest

Answer 6

to insure something you must benefit from its existance and suffer from its loss

Question 7

what is utmost good faith

Answer 7

you must answer all questions truthfully and reveal all relavant information when filling out a proposal form all material facts relating to the policy must be made known to the insurance company

Question 8

whats indemnity

Answer 8

the insured person should not benefit from insurance, insurance exists to put the insured person in the same financial position as before

Question 9

whats subrogation

Answer 9

once an insurance company has paid compensation for any insured item the right of ownership of the insured item passes onto the insurance company

Question 10

what is a material fact

Answer 10

anything that is likely to change the decision to grant insurance or to affect the level of premium charged

Question 11

what is contribution

Answer 11

where the same risk is insured with one or more insurer the cost of the claim will be split between them

Question 12

what is an insurance write off

Answer 12

the cost of repairing the damaged item is greater than the replacment cost

Question 13

what is third party motor insurance

Answer 13

covers injury or damage to another persons car or property does not cover the policy holder or their vehical

Question 14

what is third party fire and theift car insurance

Answer 14

the same as third party plus compensation for the insured person if their car goes on fire or is stolen

Question 15

what is comperhensive car insurance

Answer 15

benefits all parties and vehicals that suffer damage including the insured person

Question 16

what is a no claims bonus

Answer 16

discounts on the insurance premium awards the insured person for not making any claims on the policy

Question 17

what is a loading

Answer 17

an extra amount added onto basic premium to cover items whith increased risk

Question 18

what is home insurance buildign cover

Answer 18

covers the building in the case of a fire , flood, storm or accidental damage

Question 19

what is home insurance contents cover

Answer 19

covers all the contents of the house in the events of a fire ,flood, storm or accidental damage

Question 20

whats is personal accident cover

Answer 20

person is covered in the event of an accident

Question 21

what is health insurance

Answer 21

in the event of a serious illness or accident , health insurance covers the cost of hospital care and pays medical bills

Question 22

what is life assuarance

Answer 22

protection against a guaranteed future loss

Question 23

what is a whole life policy

Answer 23

pays compensations on the death of the insured person

Question 24

what is a term policy

Answer 24

if the insured person dies during the term of any loans / mortage any outstanding payments are payed

Question 25

whats an endowment policy

Answer 25

pays a guaranteed amount on a specific date

Question 26

whats an insurance broker

Answer 26

helps household + individuals find the insurance that bedt fits their needs + budget

Question 27

whats an insurance agent

Answer 27

sells policies on behalf of an insurance company

Question 28

whats an insurance actuary

Answer 28

employed by the insurance company to decide on the premium that should be charged based on the risk of a loss accuring and a claim being made

Question 29

whats a risk

Answer 29

how likely a person is to make a claim and how costly any claim made would be

Question 30

whats a loss adjuster

Answer 30

will investigate a claim for compensation on behalf of the insurance company and decide weither the claim is covered by the policy

Question 31

what does an insurance policy set out

Answer 31

-what is insured -the policy excess -the insurable value of the item insured -exclusions -the type of loss covered -maximum amount of compensation that will be payed

Question 32

what is a policy access

Answer 32

amount the insured person must pay for any loss or damage to the insured item

Question 33

whats an exclusion

Answer 33

specific items or risks that cant be insured

Question 34

whats underinsurance

Answer 34

the insured item has not been insured for its full replacment value

Question 35

what are the benefits of insurance

Answer 35

-allows the policy holder to replace or repair any items that have been stolen or damaged -gives the insured persona peace of mind -can help to protect household income