P.O.B Insurance (WGS)

What is Insurance?

• An agreement between an insurance company and someone who wants financial protection

• An agreement between two persons in which they both offer benefits to the other in case of an emergency

• Monetary donations to persons who have fell victim to accidents i.e. motor vehicle accidents

• A monetary fund put in by the government to help indivduals in extreme debt

What is the purpose of Insurance?

• To provide people with better life opportunities

• To uphold the principle of Good-faith

• To uphold the principle of Injunction

• To uphold the principle of indemnity

What is the principle of Indemnity?

• it focuses on restoring the insured to their original position; no better or worse off

• it focuses on restoring the insured to their original position and sometimes better

• it focuses on restoring the insured to a better position than before;

• it focuses on restoring the insured to a position often times worse than before but better than their current predicament.

A contract between the Insurer and Insured showing the details of what has been agreed upon by both parties.

This descibes the...

• Insurance Treaty

• Principle of Insurance

• Insurance Clause

• Insurance Policy

is the following a benefit of Insurance?

Creates an estate to be passed to relatives at death

• YES

• NO

Is the following a benefit of Insurance?

It is a form of saving and Investment eg. endowment policies

• TRUE

• FALSE

List the three types of people who benefit from insurance (as mentioned in the notes)

(a)  

Differentiate between an INSURER and an INSURED

(Select the correct options)

• Insurer: The policy holder who pays premiums

• Insurer: The company or agent who enters in agreement with the insured

• Insured:

  The policy holder who receives protection in exchange for paying premiums

• Insured: The company responsible for the wellfare of the insurer. Receieve premiums for providing protection

Work with the customer to determine if their individual risk is insurable. they calculate the probability of the risk occuring using past claims. A decison is made based on the findings.

This describes a/an

• Justice of the Peace

• Underwriter

• Actuary

• Insurance Agent

Specialist Statisticians who work generally to calculate the premium based the degree of risk.

This desrcibes a/an

• Underwriter

• Insurance Auditor

• Insurance Agent

• Actuary