Income

Question 1

Insurable interest

Answer 1

To insure something u must suffer from its loss and benefit from its existence

Question 2

Utmost good faith

Answer 2

You must answer all questions truthfully e.g if u smoke or not

Question 3

Indemnity

Answer 3

The insured person should not profit from insurance e.g if your car is damaged for 5,000 u don’t get 5,500

Question 4

Subrogation

Answer 4

Once an insurance company has payed compensation for an insured item it’s their property

Question 5

Contribution

Answer 5

When the same risk is insured by two companies they will divide the cost and claim between them

Question 6

Insurance broker

Answer 6

Sells insurance for many insurance companies

Question 7

Agent

Answer 7

Sells insurance for 1 insurance company

Question 8

Loss adjuster

Answer 8

Investigate claim for compensation

Question 9

Actuary

Answer 9

Decides on premium

Question 10

Insurance

Answer 10

Offers protection agents possible loss

Question 11

Premium

Answer 11

Is the price you pay for protection agents loss

Question 12

No claims bonus

Answer 12

Discount on insurance premium

Question 13

Average clause

Answer 13

An item has not been insured for its full replacement value

Question 14

Average clause formula

Answer 14

Amount insured %actual value X claim