Keyterms Flashcards
What is insurance?
Insurance offers financial protection against possible loss,and is designed to place the insured person back in the financial position before the loss occurred
What is a premium?
A premium is the amount charged by an insurer in return for providing insurance cover for a particular risk
What is compensation?
Compensation is a financial payment made to an insured person if they suffer an insured loss
What is upmost good faith?
When applying for insurance all materials relating to the policy must be disclosed to the insurance company
What’s is indemnity?
A profit can not be made from insurance, insurance must put the person back in the same financial state before the suffering position
What is subrogation?
Once an insurance company has paid compensation for an insured item the right of ownership of that item passes to the insurance company
What is insurable interest?
A household owner Is able to insure themselves and there valuable items,if these items are some how lost or stole those people will suffer from an financial loss
What is life insurance?
Life insurance is when you insure yourself so if and accident happens and you die suddenly that you family get a lump some of money to stay in dept
What is life assurance?
Life assurance is protection against a certain future loss,in this case life assurance means death a life assurance policy pays out when the insured person dies, not in case they die
What is whole life policy?
This pays compensation on the death of the insured person
What is endowment policy?
This pays a guaranteed amount on a specific date or if it occurs sooner ,on the death of the insured person
What is motor insurance?
Motor insurance is compulsory in Ireland that means that it is required by law to have motor insurance this means it’s a criminal offence to drive without motor insurance in Ireland
What is third party?
The minimum legal requirement for driving any motorised vehicle on a public road
What is Third party,fire and theft?
As for third party,plus the insured person for their car atchung fire or being stolen
What is comprehensive?
All parties and vehicles that suffer loss in an accident, including the insured person or their car
What is first,second and third party?
The first party is the insured person , the second party is the insurance company,the third party is anything caused by the first party (vehicle,property…)
What is a no claims bonus?
A no claims bonus is a discount on an insurance premium, it rewards the insured person for not making a claim on the policy
What is loading?
Loading is an increased amount added to basic premium to cover increased risk
What is buildings covered?
This covers the building in the event of fire,flood and storm damage it provides compensation if the structure of the building is damaged
What is contents insurance?
This covers all the contents of the building also covers against burglary
What is mortgage protection insurance?
This is a type of insurance policy that repays your mortgage if you die during the repayment term
What is Mobile phone insurance?
This is insurance a person can take out in case their mobile phone,laptop,tablet,iPad and computer gets lost stolen or damaged
What is health insurance?
This covers the cost of hospital care and some medical bills in the event of a serious illness or accident
What is risk management?
Risk management is when you try to lower the risk of an accident (EX. Get a fire alarm or cctv cameras)
