Personal Insurance/Assurance Flashcards
Premium
-money you pay to buy insurance
Compensation
-money the insurance company pays to you if you suffer a loss
Insurer
The insurance company
Insured
The person getting insurance
Broker
Gives advice and sells insurance
Actuary
Calculates the premium
Loss adjuster
Calculates the value of the loss-works for insurance company
Loss assessor
Calculates the value of the loss-works for the insurance
Proposal form
The form a person can fill to apply for insurance
Certificate of insurance
- you recieve this when you pay premium
- it details what is and is not covered
Cover note
-given if delay in sending the certificate of insuarance
Policy
-gives details of conditions and exclusions to the insurance
Claim form
The form you full in to seek compensation
Insurance interest
-benefit from it’s exhistance, suffer from it’s loss
Utmost good faith
- most answer the proposal form truthfully
- must give the company material facts regarding the item
Indemnity
- must recieve 100% of loss’ worth
- no profit should be made by the insured
Subrogation
-should the compensated item become available again
‘-> you keep the money OR the item
Contribution
Cannot receive 100% compensation from TWO companies
If under insured you use ______
The average clause:
Loss suffered X insured amount
___________________________________
Current market Value Of Item
Non-insurance risks
- natural disasters
- bad-management decisions
- legal changes
- bankruptcy
- stock going out of date
Stock
Term used to describe goods that a shop has for sales
Why do we need adequate insurance?
- covers ALL risks
- ensures we will be compensated for the mRket value
- failure to adequately insure will lead to under insurance and a reduction in compensation received
Third party insurance
- required by law
- covers the other person’s property damage
Third Party Fire and Theft Car Insurance
- cover’s other person’s damage
- covers if your car was set Alight
- covers if your car was stolen (/from)
House insurance
Protect if your home is damaged
-will not cover contents of the house
Content’s insurance
-protects the contents of your home
Mortgage protection
Will clear your mortgage if you die/if you are unable to work
Personal insurance
- medical health insurance
- salary protection insurance
- mobile phone insurance
- pay related social insurance
- travel insurance
Life assurance:
Term policy
-insurer pays a lump sum if the insured dies before an agreed date
Whole life policy
Expensive premium because the money will have to be paid out
An endowment policy
- taken out for an agreed amount of time
- if they die before the maturity date then a lump sum is paid out
- or, money wil be paid out regardless of death
- only can a,so be gotten before the maturity date, this is called the ‘surrender value’
Loadings
- cost added to premium because there is an increased chance the insured will take out compensation
- eg. Smoker, prone to flooding
Reductions
-reduced cost of the premium because there is a reduced risk of insured taking out compensation
Eg. Home: fire alarms, smoke alarms, house alarms,
Eg. Motor: seat belts, full points, car alarms
Eg. Personal: exercise, no smoking
No claims bonus
-reduced cost as you have never claimed against your insurance policy
Policy excess
-the value of the risk that the insured person has to pay/incur before compensation is paid out
Insurance
Protects you against a financial loss that MIGHT happen
