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Flashcards in Insurance Deck (32):
1

Compensation

When insurance companies pay for damage

2

Premium

The amount of money people pay to insurance companies

3

How does insurance work

People pay premiums to insurance companies for the year. The company uses the money to pay for people who have suffered a loss. Insurance companies have the money to back you up when you need it

4

Actuary

When insurance companies use statistics to find out the risk of an accident happening

5

Insurance broker

An insurance person who will contact multiple companies and get the best deal for you

6

Assessor

Same as loss adjuster but works for the people not the insurance companies

7

Risk

Likelihood of an accident happening

8

Claim

When damage is done and ask insurance company to pay for damage

9

Loadings

Higher risk=higher premiums

10

Discount

Lower risk=lower premium

11

House insurance

Covers 2 things: building and contents

12

Contents

The valuable inside the building

13

3rd party fire and theft

Minimum insurance cover you to have. If it's your fault, you and your car are not covered

14

Fully comprehensive

Everybody in the crash is covered, but has a more expensive premium

15

No claims bonus

If you don't make a claim your premium is cheaper

16

Insurance companies

Will pay for damage caused

17

Proposal form

The most important and basic document for house insurance

18

Policy

A contract between you and your insurance company. Is only handed out when they say yes to your proposal

19

Claim form

When you suffer a loss and you want a compensation, you fill out a claims form

20

What are the principles of insurance?

Utmost good faith
Insurable interest
Contribution
Indemnity
Subragation

21

Utmost good faith

Must tell insurance company truth and all facts

22

Insurable interest

You must suffer a loss when insurance item is damaged

23

Contribution

If your house is covered by insurance companies, they will only pay have the amount when the house is damaged

24

Indemnity

You cannot make a profit from insurance

25

Subragation

If there is a dispute over who fault it is, insurance companies cannot continue the claim in your name

26

What are the 3 types of life assurance

Term policy
A whole life policy
Endowment policy

27

Insurance companies

Pay for damage caused

28

Non insurance risks

Risks that are not insurable example- loss in profit due to consumers taste in fashion

29

Loss adjuster

Independent insurance claim specialists

30

Types of motor insurance

Third party and theft
Fully comprehensive
No claims bonus

31

Insurance

Will pay for damage caused

32

Average clause

A condition set up by an insurance company that a payment for damage or loss will be in proportion to the value insured