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Businnes Junior Cert Cycle > Insurance > Flashcards

Insurance Flashcards

1
Q

How it works:

A

is financial protection that covers any loss that might happen e.g. Burglary, Car Accident

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2
Q

Principles of Insurance:

A

Utmost Good Faith, Insurable Interest, Indemnity, Subrogation, Contribution

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3
Q

Utmost Good Faith

A

Utmost Good Faith: A person is obliged to answer all questions truthfully when completing the proposal form and disclose all relevant facts

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4
Q

Insurable Interest

A

Insurable Interest: You must gain (financially) by its existence and suffer (financially) by its loss

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5
Q

Indemnity

A

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

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6
Q

Subrogation

A

The insurance company has the right to seek compensation from the party that caused the loss/damage and take the damaged item for scrap value

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7
Q

Contribution

A

If you insure an item with more than one insurance company, each insurance company will contribute/divide the compensation.

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8
Q

Name Types of Personal Insurance

A

Life Assurance, Motor insurance, Home Insurance, Home Contents Insurance, Health Insurance, Travel Insurance, Mobile Insurance, Mortgage Protection Insurance

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9
Q

What is Life insurance

A

Assurance is protection against a risk that will happen e.g. death

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10
Q

Life Assurance: What is Whole Life Assurance

A

an agreed amount of money is paid to the person’s dependants when the individual dies

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11
Q

Life Assurance: What is Endowment Assurance

A

an agreed amount of money is paid when the insured reaches a certain age or on the death of the person – whichever comes first.

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12
Q

Life Assurance: What is Term Policy

A

An agreed amount is paid if you die within a certain period of time. This might be appropriate if you want to protect your family while they are young

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13
Q

Motor Insurace

A

It is required by law

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14
Q

Motor Insurance: What is Third Party

A

Third Party provides compensation to owners of property damaged by your car – it does not compensate for any damage to your car.

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15
Q

Motor insurance: What is Third Party Fire and Theft?

A

Third Party Fire and Theft: provides compensation to owners of property damaged by your car – it does not compensate for any damage to your car.
Car is also covered in case of Fire or Stolen

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16
Q

Motor insurance: Fully Comprehensive

A

Fully Comprehensive: provides compensation to all injured parties by your car AND also compensation for any damage to your car.
Due to extra cover – premium is more expensive (but worth it)

17
Q

Motor Insurance: Key Terms- No Claims Bonus:

A

No Claims Bonus: is a discount on an insurance premium. It is a reward for not making any claims

18
Q

Motor insurance: Key terms - Loading

A

Loading: is an extra amount added to your premium due to added risk

19
Q

Home Insurance

A

This covers the house building in the case of fire, storm or flood damage

20
Q

Home Contents Insurance

A

This covers the house contents in the case of fire, theft or flood damage

21
Q

Health Insurance

A

This covers the cost of hospital care and medical bills in case of accident or illness.

22
Q

Travel Insurance

A

This covers the person on holiday in case of missing luggage, passports, cancelled flights

23
Q

Mobile Insurance

A

This covers the person in case their phone is lost or stolen.

24
Q

Mortgage Protection Insurance

A

This is a type of life insurance policy that repays your mortgage if you die during the repayment term.

25
Q

What are the Steps to taking out Insurance

A

Seek Quote, Complete Proposal Form, Pay Premium, Issue Policy.

26
Q

Actuary

A

A person who calculates a Premium

27
Q

What is compensation?

A

Compensation is a reward (usually money) awarded to someone in recognition of loss, suffering or injury.

28
Q

What is Fully Insured

A

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

29
Q

What does Over Insured mean

A

this means that you will only be compensated for the value of the damage/loss caused. You will not get extra.

30
Q

Under- Insured

A

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

31
Q

What is Average Clause

A

is a condition included in insurance policies that limits the value of a claim if you are under-insured

32
Q

What is Insurable Risk?

A

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

33
Q

What is Non-Insurable Risk

A

chances of the risk/loss happening are impossible to estimate
Example: End of the World

34
Q

How to reduce the risk of Insurance

A

Install a Sprinkler System to reduce the risk of fire

Install an alarm to reduce the risk of burglary

Avoid smoking to reduce the risk of illness

Businnes Junior Cert Cycle (31 decks)

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