insurance

Question 1

what is insurance

Answer 1

covers any risk that might happen

Question 2

what is assurance

Answer 2

covers a risk that will happen

Question 3

what are the five princaples of insurance

Answer 3

utmost good faith
insurable interest
indemnity
subrogation
contribution

Question 4

what is utmost good faith

Answer 4

a person has to answer all questions truthfully when completing a proposal form and disclose all relevant facts

Question 5

what is insurable interest

Answer 5

you must gain by its existents and suffer by its loss

Question 6

what is indemnity

Answer 6

you cannot make profit from a loss. the compensation you receive will only be equal to the current value of the item

Question 7

what is subrogation

Answer 7

the insurance company has the right to seek compensation from the party who caused the loos or damage and take damaged item for scrap value

Question 8

what is contribution

Answer 8

if you insure an item with more that one insurance company each company will contribute to the compensation

Question 9

What are the steps of insurance

Answer 9

Seek quota
Proposal form
Pay premium
Issue policy

Question 10

waht is seeking a quota in insurance

Answer 10

you must apply to a number of insurance companies and make application. this is to insure that you receive the best value for you money. you can enquire yourself for request the help from insurance broker

Question 11

what is a proposal form

Answer 11

it is a application for to be completed when applying for insurance. you must tell the truth when completing the form

Question 12

irem on proposal form

Answer 12

age
gender
address
value of item

Question 13

what is the premium

Answer 13

it is the sum of money paid ti the insurance company in return of the insurance

Question 14

how is premium price

Answer 14

level of risk
value of item being insured
the length of time

Question 15

what is the insurance policy

Answer 15

this is the document covering the details of the

risks covered
period covered
value of cover
conditions of contract

it is the contract of insurance

Question 16

what is an insurance agent

Answer 16

work for herself
shops around for the best deal on behalf
paid commision from the insurance company

Question 17

what is an insurance broker

Answer 17

works for insurance companies

receives commision for each sale trade

Question 18

what is a insurable risk

Answer 18

it must be possible to calculate the risk involved and there must be a likelihood of the risk not happening

Question 19

what is an non-insurable risk

Answer 19

chances of risk or loss happening are impossoble ti estimate

Question 20

what is an actuary

Answer 20

this is the person who calculates the premium

Question 21

what is a loading

Answer 21

any extra risk is known as a loading. an extra premium is changes when the risk is high

Question 22

no claims bonus

Answer 22

this is the deduction given to customers given accident free record

Question 23

what are days of grace

Answer 23

it may take a few days to renew policy so the insurance company will cover for you free known as days of grace to give you time to renew policy

Question 24

what is fully insured

Answer 24

this means that you will be compensated for the full amount of damage/loss created

Question 25

what is over insured

Answer 25

this mean it will only be compensated for the value of the damage caused

Question 26

what is under insures

Answer 26

this means you will only be compensated for a portion of the damage/loss caused

Question 27

what is average clause

Answer 27

it is a condition included in insurance policies that limits the value of claim if you are under insured. this means you will only be compensated to the same portion you are insured

Question 28

what is the formula for average clause

Answer 28

sum insured
—————— X loss
actual value

Question 29

what is personal accident insurance

Answer 29

this gives a lump sum payment to the insured in the event of the accident causing death/permanent disability

Question 30

what is private medical insurance

Answer 30

this covers hospital fees,medical consultants fees and other medical expenses

Question 31

what is income protection insurance

Answer 31

this provides a regular income if the insured is no longer able to work due to a long term illness or disability

Question 32

what is the importance od adequate insurance

Answer 32

all risks are insured for the correct amounts so you are not out of your pocket