Insurance and assurance
An insurance ________is a contract between an
insured person and an insurance company that gives
the insured person protection against the occurrence
of a risk that might happen.
Applying For An Insurance or Assurance Policy
The person applying for a policy fills out a_________
_________
If the application is accepted the _______________
will calculate the premium.
An _______ _____gives protection against the
occurrence of something that will happen.
The insurance company will issue a Cover Note once
the first premium is received.
Obtaining Insurance
Finally, the insurance company will issue the
Insurance Policy.
Apply directly to an insurance company.
Making a Claim
Apply to an insurance _______who is employed by
one insurance company and sells policies on behalf of
that company. The _______receives commission on
each policy sold.
The insured person fills out a ______ _____ giving
details of the loss, and its estimated value. The Gardaí
may have to be informed of the loss.
Apply to an insurance ______who is a self employed
individual (or company) and sells policies on behalf of
many different insurance companies. The
___________should be able to advise customers
about the best policies for their needs.
The insurance company will then send out an
____________or a loss _________to calculate the
value of the loss. Finally, if the claimant is properly
insured, the insurance company will indemnify him or
her.
The Average Clause
The _______is the price paid for the insurance cover
The size (value) of the _______depends on:
1. The degree of risk involved
2. The potential sum of money
involved
insurance
3. The administration costs of the
company
A ________________is a reduction in the standard
premium if the insured person has not made a claim
against the policy for a given period of time.
The average clause is a condition included in
insurance policies that limits the value of a claim if
you are _____-insured.
If you insure your house for only two thirds of its
value you will only receive two thirds of the value of
any damage to the house.
Example: Your house is worth €300,000 but you only
insure it for €200,000 (i.e. 2/3 of its value)
A fire causes €60,000 worth of damage to it.
Principles Of An Insurance Or An Assurance Contract
Formula
______________________
X
The principle of utmost good faith
The principle of ______________________
The principle of indemnity
The principle of __________________
The principle of subrogation
You will only receive ___________
from the insurance company
(2/3 of €60,000)
Household Insurance
Household insurance policies are usually classified
under four headings:.
1.Personal insurance
Private ___________insurance
The loss is imminently inevitable (bound to happen
soon).
The damage is gradual, e.g. depreciation of an asset.
The occurrence of the risk would be catastrophic for
the insurance company.
_________protection insurance
Travel insurance
PRSI / USC
2. Property Insurance Policies
Building & ____________ insurance
All ________insurance
3. Life Assurance Policies
A ____________________policy
A whole life policy
An __________________ policy
_____________ ________– is the value of the life
assurance policy if you cash it in early. It is much less
than the amount you would receive if you let it run its
full course.
4. Motor Insurance Policies
_____________policy
______________________________________ policy
Business Insurance
1. Buildings Insurance –
2. ‘All Risks Fire Insurance’ - insures against fire,
lightning, burst pipes, flooding.
3. ‘_____________ _________insurance’ - covers
against loss of profits resulting from having to close
the business while the damage is repaired.
4. Theft/Burglary insurance – covers against stock and
equipment being stolen
4._________ ___ ______– covers against goods
getting stolen/lost while being transported
5. __________ _________insurance – covers
members of the public who may get injured/killed
while they are on your premises
6. ____________ ___________insurance – this covers
any employee who may get injured/killed while at
work.
7. _________ _________insurance – covers the
business against any claims made by the public who
got injured/killed as a result of a faulty product.
Fully ____________________policy
8. _______________ ______insurance – covers
against any losses the business may suffer as a result
of an employee stealing from them or engaging in
fraudulent activities or being dishonesty.
Non-Insurable Risks
An insurance company will refuse insurance if a risk
has any or all of the following characteristics:
An actuary, due to lack of statistics, cannot calculate
the probability of the risk occurring.
There are not enough people seeking similar
insurance to share the risk.
9. Motor insurance –Third party, Third party fire &
theft, Comprehensive