unit 2 defenitions

Question 1

insured

Answer 1

the business or individual seeking insurance

Question 2

insurer

Answer 2

the organisations providing insurance

Question 3

insurance premiums

Answer 3

payment for insurance cover

Question 4

indemnity

Answer 4

protection against a possible loss or financial burden

Question 5

contribution

Answer 5

if the insurer has taken insurance claims from more than one company, this principle states that companies can collect money from each other to pay off claims

Question 6

subrogation

Answer 6

an insurance principle where if a good, which has had compensation paid to it before, was recovered it belongs to the insurer until compensation is paid off

Question 7

insurable interest

Answer 7

an insurance policy which states that a party cant make a claim based on another party’s loss

Question 8

utmost good faith

Answer 8

an insurance principle which states that both parties need to be honest and clear with each other when passing information

Question 9

loss adjuster

Answer 9

person employed by the insurer to ensure that the value of a claim is fair

Question 10

actuary

Answer 10

person employed by insurer to analyze insurance risks and calculate total loss value

Question 11

assessor

Answer 11

person who works for the claimant who analyzes insurance risks and calculates true loss value

Question 12

third party

Answer 12

a legal term for someone who doesn’t have a direct connection with the transaction (karen much??), but who may be affected by it

Question 13

comprehensive insurance

Answer 13

motor insurance covering third part claims, injuries to the owner, fire and theft loss

Question 14

employers liability insurance

Answer 14

cover which is required by law to provide compensation to an employee injured at work

Question 15

public liability insurance

Answer 15

insurance cover which helps against third party claims

Question 16

product liability insurance

Answer 16

insurance cover for the cost of damages caused by a faulty good

Question 17

fidelity garuntee insurance

Answer 17

an insurance cover which provides compensation against business loss caused by acts of fraud, theft or dishonesty by an employee

Question 18

cover note

Answer 18

a document which provides temporary insurance cover while cert of insurance is being made

Question 19

cert of insurance

Answer 19

document required by law stating that the insurance for a specified risk exists

Question 20

warranty

Answer 20

a written document which company promises to repair/replace goods under a specific period of time

Question 21

protectionism

Answer 21

approach used by gov to protect domestic producers

Question 22

dumping

Answer 22

when a foreign firm sells a large quantity of goods below cost in domestic market

Question 23

infant industries

Answer 23

industries that aren’t yet established

Question 24

trade war

Answer 24

where 2 or more countries try to damage each other’s international trade by imposing trade barriers between them

Question 25

import quota

Answer 25

a physical limit to the number of foreign goods allowed in a country

Question 26

embargo

Answer 26

a complete ban on international trade, usually for political reasons

Question 27

administrative barriers

Answer 27

rules and regulations that prevent a country from exporting to a country easily

Question 28

foreign exchange market

Answer 28

the international market for different currencies