Chapter 1 IF1
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- Created by: DeborahRobinson
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What insurance policy pays benefits in the event of an accident
Personal accident
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What are the 3 stages of risk management?
Risk identification, Risk analysis, Risk control
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What policy indemnifies a shop for compensation and legal costs they incur if a customer is injured in a shop and sues them
Public liability
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What is the MIAFTR?
Motor Insurance Anti Fraud & Theft Register
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The timing delay between insurers receiving premiums and the occurrence of claims creates the what?
Premium reserve
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Define a moral hazard?
That which is caused by the attitude and behavior of people e.g. carelessness or dishonesty.
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What policy covers loss or damage caused by theft
Theft
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What is liability insurance? - list 5 types
The insurance of legal liability to pay compensation and costs awarded against the insured in favour of another party. 1. Employers liability, 2. Public liability, 3. Products liability, 4. Professional Indemnity, 5. Management Liability
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What are the main areas Marine insurance covers?
Marine cargo (Physical damage to cargo), Marine Hull (Physical damage to ship), Loss of income (Loss of hire or freight or passage money, Marine liabilities (liabilities to passengers, crew and other ships - often insured with mutual P&I clubs)
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What is the LPRC
Loss Prevention Research Council undertakes risk based reasearch to reduce losses eg crime losses
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What is a fundamental risk?
A risk that occurs on such a vast scale that it cannot be insured such as war, famine or economic recession.
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What is an equitable premium?
This means that for a person to join the specified pool they must pair a equitable (fair) premium based on the risk they bring to the pool.
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What policy indemnifies an employer for compensation and legal costs they incur if an employee injured at work sues them?
Employers liability
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What policy covers theft of cash from shop
Money
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Who are the ABI?
Association of British Insurers
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What is a financial risk?
A risk which can be quantified in money eg theft of car
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Give an example of a high frequency low severity risk
Motor windscreen damage (lots of small claims)
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What is the role of the Fire Protection Association
Researches construction and materials used in buildings and methods of fire extinguishment to improve fire safety
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If someone carries a risk themselves they are known as?
Risk seeking
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What pecuniary policy will protect their business in the event of one of their customers not paying a debt for good or services they have been supplied with
Credit insurance
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Risk is defined in terms of?
Uncertainty and unpredictability
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What does Airmic stand for?
Association of Insurance and Risk Managers in industry and commerce.
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What pecuniary policy indemnifies a company if a change in political conditions or revolution cause them a loss
Political risks
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What policy will pay an insured mortgage or loan repayments in the event they can not work eg due to an accident or redundancy
Payment protection insurance
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What is an Excess?
A small fixed sum retained/selfinsured by the insured. If the loss id £1,000 and the excess is £250 insurers pay £750.
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What policy covers the cost of replacing windows damaged in a department store
Glass
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What are 3 other meanings of "risk" in insurance (other than uncertainty)
1. The peril being insured e.g. Fire risk, 2. The thing being insured e.g. the ship, 3. The thing insured and the scope of cover eg health insurance risk
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What is dual-insurance?
This occurs when there are 2 or more policies in effect covering the same risk eg watch covered by Travel and Household policy.
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What is a non financial risk?
A risk which can not be quantified in money eg your choice of partner
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What policy indemnifies directors for compensation and legal costs they incur if they are negligent or breach their statutory duties whilst running a company
Directors and officers liability
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Classes of Insurance
• Property Insurance, Pecuniary Insurance, Motor Insurance, Marine and Aviation Insurance, Combined or Packaged Policies, Health Insurance
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Benefits of Insurance
Releases capital within companies, Employees are kept in work, Losses are reduced in size and number, Nation benefits from investments made by insurers
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Components of risk
Uncertainty, Level of risk (frequency and severity), Peril and Hazard
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Other cards in this set
Card 2
Front
What are the 3 stages of risk management?
Back
Risk identification, Risk analysis, Risk control
Card 3
Front
What policy indemnifies a shop for compensation and legal costs they incur if a customer is injured in a shop and sues them
Back
Card 4
Front
What is the MIAFTR?
Back
Card 5
Front
The timing delay between insurers receiving premiums and the occurrence of claims creates the what?
Back
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