Steps in Taking Out Insurance
What is the 1st step in taking out Insurance?
Calculate the value of the item you wish to insure.
What is an Exclusion Clause?
Situations that cannot be insured.
Eg:
A house situated near a river that is known to flood every year.
What does "Insurable Interest" mean?
In order to insure something you must benefit from its existence & suffer from its loss.
What is a Proposal Form?
Application form for insurance.
What is a broker?
Gives advice on insurance
What is the 2nd step in taking out insurance?
Contacting an insurance company
What is a Policy Excess/Excess Clause?
The insured person may have to pay the first €100 of the compensation themselves.
What does "Utmost Good Faith" mean?
You must tell all relevant information when filling out an application for insurance.
What is a policy?
Contract of insurance
Gives full details of cover
What is an Agent?
Sell insurance for only one company.
What is the 3rd step in taking out insurance?
Completing the application form
What is a Proximate Clause?
What is the exact cause of the loss.
Eg. was it fire or theft or flood?
What does the term "Indemnity" mean?
You cannot make a profit from insurance.
What is a Cover Note?
Temporary policy
Used in car insurance, while you are waiting for insurance disc
What is an Actuary?
Calculates insurance premiums.
What is the 4th step in taking out insurance?
Paying the Premium
What is Compensation?
Is the money you get when you make a claim.
What does the term "Contribution" mean?
If a risk is insured with two insurance companies each will pay half of the compensation.
What is a Certificate of Insurance?
Proof of Insurance
What is a Loss Adjuster?
Calculates the value of the loss.
Works for the insurance co.
What is the 5th step in taking out insurance?
Bonus 100: What is the 6th step.
Receiving insurance documentation
What is the difference between Insurance and Assurance?
Protection against a loss you hope will not happen.
Vs
Protection against a loss you know will happen.
What does the term "Subrogation" mean?
Passes the legal right of the insured over to the insurer to claim from a third party who caused the loss.
What is a Claim Form?
Form you fill out when a loss occurs and you want compensation
What is a Loss Assessor?
Calculates the value of the loss
Represents the insured