Insurance

Question 1

Insurance is

Answer 1

Offers protection against possible loss and puts insured person back in the same financial position that they were in before the loss occurred

Question 2

Insurance policy is

Answer 2

policy sets out details of the types of losses covered and the amount of compensation to be paid.

Question 3

Premium is

Answer 3

the amount paid by the insured person to an insurer in return for providing insurance cover for a particular risk. Or financial loss

Question 4

Policy excess is

Answer 4

Is the amount if money you have to pay before the insurance company covers the rest
the part of a claim that is not paid by the insurance company

Question 5

Loading is

Answer 5

Is an extra amount added to the basic premium to cover increased risk

Question 6

No claims bonus is

Answer 6

a discount on an insurance premium. It rewards the insured party for not making any claims on the policy.

Question 7

Actuary is

Answer 7

An actuary is employed by the insurance company to decide on the premium that should be charged based on the risk of a loss occurring and a claim being made.

Question 8

Claim form is

Answer 8

Standard form containing details of how loss occurred and the amount being claimed

Question 9

Quotation

Answer 9

a statement of the amount of money that an insurance company calculates as the cost of providing insurance for something

Question 10

Accessor

Answer 10

Assesses your loss and sees how much compensation is to be paid