Insurance

Question 1

Compensation

Answer 1

When insurance companies pay for damage

Question 2

Premium

Answer 2

The amount of money people pay to insurance companies

Question 3

How does insurance work

Answer 3

People pay premiums to insurance companies for the year. The company uses the money to pay for people who have suffered a loss. Insurance companies have the money to back you up when you need it

Question 4

Actuary

Answer 4

When insurance companies use statistics to find out the risk of an accident happening

Question 5

Insurance broker

Answer 5

An insurance person who will contact multiple companies and get the best deal for you

Question 6

Assessor

Answer 6

Same as loss adjuster but works for the people not the insurance companies

Question 7

Risk

Answer 7

Likelihood of an accident happening

Question 8

Claim

Answer 8

When damage is done and ask insurance company to pay for damage

Question 9

Loadings

Answer 9

Higher risk=higher premiums

Question 10

Discount

Answer 10

Lower risk=lower premium

Question 11

House insurance

Answer 11

Covers 2 things: building and contents

Question 12

Contents

Answer 12

The valuable inside the building

Question 13

3rd party fire and theft

Answer 13

Minimum insurance cover you to have. If it’s your fault, you and your car are not covered

Question 14

Fully comprehensive

Answer 14

Everybody in the crash is covered, but has a more expensive premium

Question 15

No claims bonus

Answer 15

If you don’t make a claim your premium is cheaper

Question 16

Insurance companies

Answer 16

Will pay for damage caused

Question 17

Proposal form

Answer 17

The most important and basic document for house insurance

Question 18

Policy

Answer 18

A contract between you and your insurance company. Is only handed out when they say yes to your proposal

Question 19

Claim form

Answer 19

When you suffer a loss and you want a compensation, you fill out a claims form

Question 20

What are the principles of insurance?

Answer 20

Utmost good faith
Insurable interest
Contribution
Indemnity
Subragation

Question 21

Utmost good faith

Answer 21

Must tell insurance company truth and all facts

Question 22

Insurable interest

Answer 22

You must suffer a loss when insurance item is damaged

Question 23

Contribution

Answer 23

If your house is covered by insurance companies, they will only pay have the amount when the house is damaged

Question 24

Indemnity

Answer 24

You cannot make a profit from insurance

Question 25

Subragation

Answer 25

If there is a dispute over who fault it is, insurance companies cannot continue the claim in your name

Question 26

What are the 3 types of life assurance

Answer 26

Term policy A whole life policy Endowment policy

Question 27

Insurance companies

Answer 27

Pay for damage caused

Question 28

Non insurance risks

Answer 28

Risks that are not insurable example- loss in profit due to consumers taste in fashion

Question 29

Loss adjuster

Answer 29

Independent insurance claim specialists

Question 30

Types of motor insurance

Answer 30

Third party and theft Fully comprehensive No claims bonus

Question 31

Insurance

Answer 31

Will pay for damage caused

Question 32

Average clause

Answer 32

A condition set up by an insurance company that a payment for damage or loss will be in proportion to the value insured