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WorksheetsLC Bus. Insurance
Total questions: 30
Worksheet time: 15mins
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
What is a "policy excess" ?
the limit of what the policy will cover
the first portion of the claim that must be paid by the insured
the remainder of the total claim that the insurer must pay
the over-insuring of an item for financial gain
What is NOT a feature of "loading"?
when an extra risk applies to a policy
an additional charge on top of the basic premium
when a provisional driver pays extra for car insurance
none of the above
What is a reduction in the premium charged if nothing has been claimed previously on the policy.
good client award
full claims bonus
no claims bonus
none of the above
What is the job title of someone who calculates the amount of compensation to be paid on a claim?
actuary
assessor
loss adjuster
insurance agent
What is the job title of someone who sells insurance for a single insurance company?
actuary
middle man
insurance broker
insurance agent
What is the job title of someone who calculates the PREMIUM to be paid on a policy?
actuary
assessor
loss adjuster
insurance agent
Which is NOT a basic principle of insurance?
Insurable interest
Bad faith
Subrogation
Indemnity
Which of the following is NOT a feature of insurable interest?
the insured person must not gain financially on a claim
the insured person must own the item insured
the insured must benefit from its existence
the insured must suffer financially from its loss
Insuring your neighbours car would go against which Principle of Insurance?
Insurable interest
Utmost good faith
Subrogation
Contribution
Insuring an item with more than one insurer would go against which Principle of Insurance?
Insurable interest
Utmost good faith
Subrogation
Contribution
Which of these is NOT a feature of Indemnity?
you cannot make a profit from a claim
compensation only to the value of the loss suffered
an under-insured item will be subject to the average clause rule
an over-insured item will be subject to the average clause rule
A €400k house is only insured for €300k, a fire causes €20k damage. Under the average clause rule, how much will the insurer pay ou?
€20k
€15k
€10k
nothing (they didn't act in utmost good faith)
A €400k house is only insured for €300k. It is under-insured by how much?
100%
80%
75%
66%
Subrogation states that once you have received compensation for a claim, you cannot do what?
sue the insurer
sue the person at fault
keep any rights to the damaged item
all of the above
There are three main types of life ASSURANCE policies. Which is NOT one of them?
Whole life policy
Partial life policy
Term life policy
Endowment policy
An assurance policy where a person pays premiums until they die, then the insurer pays out to a named person, is called...
a whole life policy
a death policy
a funeral expenses policy
a widower's dream policy
An life assurance policy where a person pays premiums for a certain length of time and is only covered if they die during that period, is called...
a whole life policy
a term life policy
an endowment policy
none of the above
An endowment policy is a life assurance policy that pays out when...
the person retires
the person dies
either A or B
neither A nor B
A business insurance policy that covers claims made by customers injured while using their products is called...
public liability
private liability
product liability
people liability
A business insurance policy that covers claims made by people injured while on company property is called...
public liability
private liability
product liability
cost liability
