Intro to Insurance
List 2 types of insurance
car
travel
life
health
house
List 2 principles of insurance
1.Insurable interest
2.Indemnity
3.Utmost good faith
4.Subrogation
5.Contribution
The more risk the higher the
premium
Do you take the discount off your premium before or after loadings?
After loadings
What is insurance?
A written agreement between an individual and an insurance company. It states that the insurance company will pay money to the individual if that person suffers a lot.
This principle states that the insured person must not make a profit from insurance.
Indemnity
What is a no claims bonus?
If you make no claims in the previous year (no accidents), you will receive a 10% discount on next year’s premium.
John insured his phone worth €1,000. His policy includes excess of €100. How much compensation will he receive?
€900
What type of insurance is required to have by law?
Car
This principle states that the insured person must have a personal interest in the item being insured. That is, they must gain by its existence and suffer from its loss.
Insurable interest
Give 2 examples of loadings for health insurance.
Smoking
Old age
Suzie has a house worth €300,000.
Suzie got a quote from an insurance broker for the following:
House insurance for €4 for every €10,000.
How much is the premium?
€120
What is the difference from third-party and fully comprehensive insurance?
1.Third party – The minimum type of insurance that you must have by law. This covers other people and cars in an accident but not yourself.
2.Fully Comprehensive – This covers all parties and their cars in an accident.
Explain Subrogation
This states that if you receive full compensation from a damaged item then the damaged item now belongs to the insurance company.
What is an actuary?
An Actuary will work out the price considering the risks involved
Isac wants to take out life insurance, worth €100,000.
He got the following quote:
€50 for every €40,000
There is also an online discount of 10%. He applies online.
How much is his premium?
€112.50