1. List three benefits of insurance. 2. List four types of insurance a consumer can have. 3. List four steps in taking out an insurance policy.
4. Explain the following insurance terms: (a) Broker
(b) Proposal form (c) Premium (d) Loading (e) Claim form
5. List three ways in which an insurance company can settle a claim.
Critical Thinking Skills
1. Liz Keogh lives at 22 Seaview, Westport in a house currently valued at €250,000. She has valued her contents at €50,000. Liz has insured her
house and contents with Alpha Insurance after they quoted her €1.50 per €100 for buildings cover and €2 per €100 for contents cover, including accidental damage. When applying for insurance, Liz did not mention on the proposal form that the house is subsiding and the foundations need to be repaired.
(a) Calculate the premium Liz will have to pay Alpha Insurance.
(b) A serious crack has now appeared on the side of the house due to the subsidence. Liz wants to claim compensation so that she can pay for the full repairs to be done to the house. Will her insurance claim be successful? Give one reason for your answer.
