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17 Cards in this Set
- Front
- Back
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Define Premium |
The money paid to the insurance company by the insured to cover a risk |
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Define Proposal |
The application form a household or business fills in to apply for insurance |
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Define Quotation |
The amount to be paid to cover the risks in a proposal, the amount depends on the degree of risk, value of the item and no claims bonus |
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Define Policy |
If the customer accepts and pays the premium a policy document detailing the terms of the contract is sent to the insured (customer) |
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Define Insurance claim |
When a risk happens an insurance claim is filed describing what happened and stating the amount of money to be claimed by the insured. The company can use an assessor to inspect the claim |
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Principles of insurance |
Insurable interest Utmost good faith Indemnity Contribution Subtrogation |
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Define Insurable interest |
You can insure something only if you would suffer a financial loss if the thing insured was lost or damaged |
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Define Utmost good faith |
An insured person must give accurate and full information to the insurance company |
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Define Indemnity |
An insurance claim must only compensate the insured cannot profit |
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Define Contribution |
If an item is insured under two companies the insured can only claim for loss once, both companies arrange to pay half each |
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Define Subrogation |
After the company pays for compensation they have the right to: Take possession of the item. Sue any person who is responsible for the loss to recover the cost. |
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Define Average clause |
If something is underinsured, only a proportion of any claim will be paid out |
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Employer's liability insurance |
A insurance to protect employer's from claims by employees who suffer injuries in the workplace |
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Product liability insurance |
Protects a business from claims from it's customers who suffer an injury or loss resulting from faulty goods produced by the firm |
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Public liability insurance |
Insurance which protects q firm against claims from the general public who suffer injury or loss as a result of visiting the premises of the firm |
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Risk management |
Eliminating or reducing risks to lower insurance premiums |
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Third-party insurance |
A type of motor insurance that provides protection against claims by parties other than the insured for injuries caused by the insured person's car |
