Insurance

Question 1

What is Insurable Interest?

Answer 1

You will suffer a financial loss when the insured item is damaged.

Question 2

What is contribution?

Answer 2

If an insured item is covered by two insurance companies, each company will pay half.

Question 3

What is indemnity?

Answer 3

You can’t make a profit from insurance.

Question 4

What is subrogation?

Answer 4

When there is a dispute at who is at fault, the insurance company can continue the claim in your name.

Question 5

What is compensation?

Answer 5

What the insurance company pays out for damage caused

Question 6

What is a premium?

Answer 6

What you pay to an insurance company.

Question 7

Who is an actuary?

Answer 7

A person who works for the insurance company and works out premiums.

Question 8

What does an insurance broker do?

Answer 8

He compares premiums from different insurance companies and finds you the cheapest.

Question 9

What are the 2 things home insurance covers?

Answer 9

Buildings and contents

Question 10

What is Utmost good faith?

Answer 10

When taking out insurance, tell all facts and the truth.

Question 11

Name the 3 types of life assurance

Answer 11

1. Term Policy
2. Whole Life Policy
3. Endowment Policy