CHAPTER 11 – INSURANCE tsio 1. Copy and fill in the blanks.
a. The insurance company is known as the ___________. The person who took out the insurance is known as the insured.
b. A ___________ form is the application form for insurance.
c. The fee paid by the insured for insurance is called a ___________.
d. The different types of household insurance are grouped under four main headings: home insurance, life ___________, car insurance and personal insurance.
e. ___________ refers to how likely it is that the event being insured against will take place.
f. The person who calculates premiums for an insurance company is called an ___________.
g. A ___________ is an amount added to the basic premium due to risk.
2. Explain what is meant by insurance.
3. Name one of each of the following types of insurance: a. Life assurance b. Car insurance c. Personal insurance.
ns 4. Identify the following insurance principles.
a. This principle states that the insured person must have a personal interest in the item being insured.
b. This principle states that a person must honestly provide important information about themselves and the item being insured when applying for insurance.
c. This principle states that the insured person must not make a profit from insurance.
5. Give three examples of loadings and state which type of insurance they affect.
6. Outline five ways to reduce risk.
7. Explain the difference between a proposal form and a claim form.
8. Linda Reilly insured her house for €200,000, although the actual value of the
house is €300,000. Calculate how much money Linda will receive if:
a. A fire causes €18,000 worth of damage to the house.
b. The house is completely destroyed. Explain your answer.
