Insurance
RB, p 30
• Insurance is like marriage. You pay, pay,
pay, and you never get anything back.
• Al Bundy
• The chief beneficiary of life insurance
policies for young, single people is the life
insurance agent.
Wes Smith
Want to take out an insurance policy?
Put in the right order:
M contact an insurance agent or broker
G file/submit a claim in case of an accident
D consider the risks you face
A decide to insure sth. against an accident/ theft
or damage (or: seek insurance cover)
S receive compensation / indemnity
A contract an insurance policy and pay a
premium for the insurance cover
E the insurance company settles a claim
Write the letters in the right order...
Want to take out an insurance policy?
Put in the right order:
D consider the risks you face
A decide to insure sth. against an accident/ theft
or damage (or: seek insurance cover)
M contact an insurance agent or broker
A contract an insurance policy and pay a
premium for the insurance cover
G file/submit a claim in case of an accident
E the insurance company settles a claim
S receive compensation / indemnity
DAMAGES or indemnity
→ RB, p 30
Where does your premium go?
claims
pool
of
premiums
overheads
investments
industry
government
individuals
profits
Describe the graph!
• As can be seen from the graph, thousands of
people pay _____________ to insurance
companies, which use the money to pay
____________, fixed and variable costs. The
rest of the pool of premiums can be
______________ in the form of lending to
___________, ___________, or
_____________ in order to earn
_____________. In this way insurance
companies become large institutional investors
that place great sums of money in various
securities.
Describe the graph!
• As can be seen from the graph, thousands of
people pay premiums to insurance
companies, which use the money to pay
overheads, fixed and variable costs. The rest
of the pool of premiums can be invested in
the form of lending to industry , government,
or individuals in order to earn profit. In this
way insurance companies become large
institutional investors that place great sums of
money in various securities.
WHAT DO THEY DO?
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UNDERWRITER
BROKER
INSURER
POLICY HOLDER
LOSS ADJUSTER
WHO IS IT?
• The person charged with evaluating an
insurance claim to determine the
insurance company's liability under the
terms of an owner's policy.
WHO IS IT?
• The person who evaluates the risk and
exposures of potential clients. S/he
decides how much coverage the client
should receive, how much they should pay
for it, or whether even to accept the risk
and insure them.
WHO IS IT?
• A person or organization that has an
insurance policy. S/he receives the
specific types of coverage (life, health,
etc.) stated in the policy, subject to the
payment of premiums, usually on a
monthly basis.
WHO IS IT?
The party to an insurance arrangement
who undertakes to indemnify for losses.
WHO IS IT?
The person who works with many
insurance companies to find the very best
available policies for his or her clients.
Pair the halves of sentences:
• 1. It is important to keep the value of your policy
• 2. Make sure you get insured
• 3. When you say what you want your insurance
to cover,
• 4. If an accident does happen,
• 5. If the company agrees to your claim,
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a) you make a claim to the insurance company.
b) against accidents.
c) you receive compensation.
d) then the broker will tell you which policy you
could take out.
• e) closely linked to the value of your property.
• 1. It is important to keep the value of your policy
closely linked to the value of your property.
• 2. Make sure you get insured against accidents.
• 3. When you say what you want your insurance
to cover, then the broker will tell you which
policy you could take out.
• 4. If an accident does happen, you make a claim
to the insurance company.
• 5. If the company agrees to your claim, you
receive compensation.
Lloyd’s tsunami exposure limited (R, p40)
• Explain the headline in simple terms!
• Explain the following:
- unscathed
- property claims
- limited/minimal exposure - reinsurers
- penetration of insurance
- insured losses
- insurance spent per head
- exclusions for “acts of God”
- the worst on record in terms of...
- softening of premium rates
Optional hw:
STRUCTURED NOTES
VOCABULARY
• unscathed – not harmed or injured
• reinsure – to share the insurance of something
between two or more insurance companies
• penetration (of insurance) – MARKETING – how
much of a particular market insurance sales
cover
• exposure – the amount of money (the insurance)
company risks losing
• property claims – insurance claims for property
that has been damaged
• soft (premium) rates – falling because supply
exceeds demand ( = a soft insurance market)
Revision: fill in the missing prepositions
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face risk / face a risk ____ fire
insure ______ risk / burglary / theft / injury
to be covered _______ loss
two parties ____ an insurance contract
receive money ____ premiums
pay money ____ compensation
penetration ___ insurance
worst year ___ record
big number ___ insurance terms
compared ____ $ 2000 ___ head
exclusions ____ “acts ___ God”
an analyst ___ Numis Securities / PBZ / CNB
Revision – fill in the missing prepositions
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face risk / face a risk of fire
insure against risk / burglary / theft / injury
to be covered against loss
two parties to an insurance contract
receive money in premiums
pay money in compensation
penetration of insurance
worst year on record
big number in insurance terms
compared to $ 2000 per head
exclusions for “acts of God”
an analyst at Numis Securities / PBZ / CNB
BREAK 
Preparing for the written and oral exam
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read each relevant text
underline unknown words/expressions
find their meaning (dict., note-book, slides, web,...)
make sure you understand all the text
consider the various related texts and materials as
elements contributing to your general
understanding of a certain topic
see which of the words/expressions in the texts
were important for this topic (slides, notebook,
vocabulary sections in MK and Reader)
explain their meaning in simple English
retell the main message of each text orally
be prepared to discuss various topics and present
your personal views
Think what ex. could be expected in the test
Types of exercises you can expect:
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Read the definition/explanation and provide the right term
Supply the missing word to make strong word partnerships, use the
expression to answer a question
• Match words to create strong word partherships and use the expressions
to write about a (given) topic
• Find the odd one out & explain your answer
• Complete the text by filling in the missing words
• Fill in the missing prepositions
• Compare X and Y
• Discuss advantages and disadvantages of X
• Downtone the following sentences (Lang. of meetings - PE2)
• Graph description (PE 2) – fill in exercise
• Group words and expressions according to topics
• Write a report
• Translate (key terms) into or from Croatian
→ REVISION