Insurance Flashcards

1
Q

insurance

A

offers financial protection against possible loss
protects against risk
should put the insured person back in same financial position as before

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

principles of insurance

A
utmost good faith
insurable interest
indemnity
contribution
subrogation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

utmost good faith

A

must be true/honest about all material facts/info
if withheld, contract could be void, claims rejected
material facts- any info that would affect the companys decision to insure them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

insurable interest

A

you can only insure something you own ie you have a legal relationship with the item
the policy owner must benefit from the continued existence of the item and suffer financially from its loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

idemnity

A

cannot profit from an insurance claim
no profit from a loss, only recovery of the loss
put the claimant in the same position as before
amount insured for = cost of a replacement
if underinsured- average clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

average clause

A

claim x amount item is insured for
————————————–
how much item is worth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

contribution

A

seeks to prevent a person from making a profit from insurance by insuring an item with more than one insurance company
if insured twice- amount claimed is proportionally divided between them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

contribution formula

A

claim x amount insured with one company
————————————————–
total amount insured with all companies
do for each company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

subrogation

A

once full compensation is paid any remaining property (intact or partly damaged) becomes the property of the insurance company
any rights to sue a third party for damage caused revert to the insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

amount of premium to be paid depends on

A
level of risk (loading)
value of item
previous claims (company or claimant)
profit
government taxes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

insurance for business

A

fidelity guarantee insurance
public liability insurance
employers liability insurance
product liability insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

fidelity guarantee insurance

A

protects against loss due to employers stealing cash/stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

public liability insurance

A

protects against loss due to members of the public having an accident on the business premises or negligence of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

employers liability insurance

A

covers business against claims from employers as a result of accidents in the workplace

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

product liability insurance

A

protects the business against claims from customers as a result of defective products that caused harm

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

third party motor insurance

A

insurance company only pays for the damage or injury caused to another person and their property
doesnt cover the policy holder

17
Q

third party fire and theft motor insurance

A

same as third party plus fire and theft to vehicle

18
Q

comprehensive motor insurance

A

compensation is paid for any damage or injury to all parties involved

19
Q

household insurance

A
health insurance
life assurance
house and contents insurance
motor insurance
mortgage protection insurance
20
Q

risk management

A

planned approach to minimising the risks a business is exposed to by:

  • insurance
  • increasing security eg CCTV
  • proper training eg fire drills
  • regular safety inspections