Insurance Flashcards
What is the premium
Cost of insurance
Describe insurance
Insurance offers protection against possible loss and tries to put the insured person back in the same financial position they were in before the loss occured
What are the 5 principles of insurance
Insurable intrest utmost good faith indemnity subrogation contribution
What is insurable intrest
To insure something you must benefit from its existance and suffer financially from its loss
What is utmost good faith
You must answer all questions truthfully and reveal all relevant information when completeing a proposal or claim form
What is indemnity
The insured person should not profit from insurance. Insurance exisits to put thinsured person back in the same financial position as they were in before suffering the loss
What is subrogation
Once an insurance company has paid compensation for any insured item, the right of ownership of that item possses to the insurance company
What is Contribution
Where the same risk is insured with more than one insurer, they will divide the cost of the claim between them
What is third party insurane
Injury to another person or damage to another persons car or property caused by the insured driver. It does not cover the policy holder
What is third party fire and theft insurance
As per Third party, plus compensation for the insured person if their vehicle catches fire or is stolen
What is comprehensive insurance
This benefits all parties and vehicles that suffer loss or injury in an accident, including the insured person and their vehicle
What are the two types of house insurance
Buildings and contents cover
What is mortgage protection insurance
In the event of the death of the insured during a mortgage repayment term, this type of life insurance policy repays their mortgage
What is income/salary protection insurance
If you have to take time off work or lose your employment due to disability, ilness or injury, this insurance will pay part of your income
What does PRSI stand for
Pay related social insurance
