Insurance (Junior Cert Business Studies): Flashcards
📚Flashcards
Practise the cards
14 cards from this deck
ShowHide
Practise the cards
14 cards from this deck
What insurance provides
What insurance provides
Financial protection
Definition of insurance
Definition of insurance
Written agreement: company pays for covered losses, you pay premiums
Regular fees paid to insurance company
Regular fees paid to insurance company
Premiums
Insurance benefit: covers cost of losses
Insurance benefit: covers cost of losses
Financial protection
Insurance benefit: reduces worry & stress
Insurance benefit: reduces worry & stress
Peace of mind
Insurance benefit: promotes precautions
Insurance benefit: promotes precautions
Encourages safer behaviour
Principle insurance operates on
Principle insurance operates on
Risk pooling
Why risk pooling works
Why risk pooling works
More people pay premiums than make claims
Term: regular payment to keep insurance active
Term: regular payment to keep insurance active
Premium
Term: contract explaining what's covered
Term: contract explaining what's covered
Policy
Term: request for payment after covered loss
Term: request for payment after covered loss
Claim
Term: amount you pay before insurance pays
Term: amount you pay before insurance pays
Excess
Term: discount for not making claims
Term: discount for not making claims
No claims bonus
How insurance companies profit
How insurance companies profit
More premiums collected than claims paid out