Insurance

Question 1

Types of assurance

Answer 1

Life assurance 
Term assurance 
Endowment 
Retirement annuity 
Disability cover 
Trauma cover / dread disease  
Funeral cover

Question 2

Non-compulsory insurance ( insurable risks )

Answer 2

Fire 
Vehicle (3)
All weather, damage, theft 
Fidelity 
Insurance of money in transit 
Liability insurance 
Crop insurance 
Group life cover 
Loss of income insurance

Question 3

Non-insurance risks

Answer 3

Normal operations ( inflationary , trends , losses from bad debts )

War, nuclear , radiation

Illegal activities

Question 4

Compulsory insurance *

Answer 4

Unemployment insurance ( UIF )

Compensation for occupational injuries & disease Act ( COIDA )

Road Accident Fund ( RAF)

Question 5

Requirements for valid insurance contract *

Answer 5

Insurable interest 
Good faith/ absolute honesty 
Contractual capacity 
Additional:
- intention to bind 
- executable 
- obligation 
- legally binding ( legal , sueable ) 
- communication of intent

Question 6

Concepts relating to insurance

Answer 6

• Risk,peril,hazard
• indemnification
• security
• the average clause ( over/under )
• excess
• proximate clause ( extensions )
• subrogation
• cession or assignment