Keyterms

Question 1

What is insurance?

Answer 1

Insurance offers financial protection against possible loss,and is designed to place the insured person back in the financial position before the loss occurred

Question 2

What is a premium?

Answer 2

A premium is the amount charged by an insurer in return for providing insurance cover for a particular risk

Question 3

What is compensation?

Answer 3

Compensation is a financial payment made to an insured person if they suffer an insured loss

Question 4

What is upmost good faith?

Answer 4

When applying for insurance all materials relating to the policy must be disclosed to the insurance company

Question 5

What’s is indemnity?

Answer 5

A profit can not be made from insurance, insurance must put the person back in the same financial state before the suffering position

Question 6

What is subrogation?

Answer 6

Once an insurance company has paid compensation for an insured item the right of ownership of that item passes to the insurance company

Question 7

What is insurable interest?

Answer 7

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

Question 8

What is life insurance?

Answer 8

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

Question 9

What is life assurance?

Answer 9

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

Question 10

What is whole life policy?

Answer 10

This pays compensation on the death of the insured person

Question 11

What is endowment policy?

Answer 11

This pays a guaranteed amount on a specific date or if it occurs sooner ,on the death of the insured person

Question 12

What is motor insurance?

Answer 12

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

Question 13

What is third party?

Answer 13

The minimum legal requirement for driving any motorised vehicle on a public road

Question 14

What is Third party,fire and theft?

Answer 14

As for third party,plus the insured person for their car atchung fire or being stolen

Question 15

What is comprehensive?

Answer 15

All parties and vehicles that suffer loss in an accident, including the insured person or their car

Question 16

What is first,second and third party?

Answer 16

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…)

Question 17

What is a no claims bonus?

Answer 17

A no claims bonus is a discount on an insurance premium, it rewards the insured person for not making a claim on the policy

Question 18

What is loading?

Answer 18

Loading is an increased amount added to basic premium to cover increased risk

Question 19

What is buildings covered?

Answer 19

This covers the building in the event of fire,flood and storm damage it provides compensation if the structure of the building is damaged

Question 20

What is contents insurance?

Answer 20

This covers all the contents of the building also covers against burglary

Question 21

What is mortgage protection insurance?

Answer 21

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

Question 22

What is Mobile phone insurance?

Answer 22

This is insurance a person can take out in case their mobile phone,laptop,tablet,iPad and computer gets lost stolen or damaged

Question 23

What is health insurance?

Answer 23

This covers the cost of hospital care and some medical bills in the event of a serious illness or accident

Question 24

What is risk management?

Answer 24

Risk management is when you try to lower the risk of an accident (EX. Get a fire alarm or cctv cameras)