LC Bus. Insurance

What is insurance?

• Making provision for something that will happen

• Being careful not to have an accident

• Protection against possible risk.

• Protection against known outcomes.

What is assurance?

• Making provision for something that will happen

• Being careful not to have an accident

• Protection against possible risk.

• Providing support for a friend.

An insured person cannot gain from insurance.

• True

• False

Endownment assurance is where an insurance company will pay out a lump sum only when a person dies.

• True

• False

Any student can insure himself/herself against the risk of failing an examination.

• True

• False

Risk management is about...

• identifying the risks to a business or household

• finding ways to minimise risks

• taking out insurance cover to protect against risks

• all of the above

In which way does a business NOT minimise risks?

• by installing security systems

• by monitoring staff social media accounts

• by making staff aware of health and safety procedures

• by providing staff the necessary safety equipment

An insurance proposal form is what is needed ...

• when making a claim

• to get the necessary details of the applicant

• when applying for insurance

• B & C only

Which of the following is NOT a feature of an insurance policy?

• it sets out the terms and conditions

• it is a legally binding contract

• it can be in written or oral form

• it sets out the renewal date of the policy

What does "insurance premium" mean ?

• an upgraded level of cover

• the tax levy paid to the government

• the fee paid for the policy

• a policy for celebrities and football stars