key points Flashcards
risk is ?
Risk has an element of uncertainty, unpredictability and sometimes danger
risk is?
The term risk is used in a number of different ways in the insurance market and can mean the peril or contingency that is insured, the thing (or liability) actually insured or both the thing insured and the range of contingencies or scope of cover required.
Individuals can be either risk ———– or risk————
Risk seeking or risk averse
What is the primary function of insurance
To act as a risk transfer mechanism
Risk management seeks to identify analyse and
control risk
Can a non financial risk be insured?
NO
Can a fundamental risk be insured
NO
Can a speculative risk be insured
NO
An oil rig exploding is high severity and low frequency
True / Flase
True
Pooling of risks is
Pooling of risks is the principle whereby the losses of the few are paid for by the premiums of the many who, facing the same risk, suffer no loss.
Is public liability compulsory for equestrian centres?
Yes
The main benefit of insurance is peace of mind
True / False
True
Mutual companies are owned by their shareholders
True / False
False
Principle of utmost good faith
Utmost good faith as a positive duty of disclosure, accurately and fully, all facts material to the risk being proposed, whether requested or not
Definition of insurable interest
Insurable interest is the legal right to insure arising out of a financial relationship recognised at law, between the insured and the subject-matter of insurance
Creation of insurable interest
Insurable interest can arise at common law, under contract or under statute
When insurable interest must exist depends on the class of insurance
for life assurance it must exist at inception, for marine insurance it must exist when a claim is made and for general insurance it must exist when a claim is made and usually at inception, though this not absolute provided the contract is not a wager or a gamble
Material fact
A material fact is one which would influence the judgement of a prudent insurer in fixing the premium or determining whether they will take the risk.
What does comp stand for?
Fully comprehensive
What does T.P.F.T. stand for?
third party fire and theft
What does C.B.T. stand for?
Compulsory bike test
Are contact lenses covered under a standard travel insurance?
No
EL stands for?
Employers’ liability insurance is a compulsory class of cover in the UK and provides indemnity for damages, costs and expenses where an employer has legal liability for death, bodily injury or disease sustained by an employee
PL stands for?
Public liability compensates an insured in respect of claims for legal liability from members of the public who suffer injury or damage to their property as a result of the insured’s negligence
