Business and Household Insurance and Taxation Chapter 11

What type of insurance protects against any claims for harm or loss suffered through the use of a firm's product?

House insurance
Product liability insurance (correct)
Employers liability insurance
Consequential loss insurance

What type of insurance protects against a major event that has a financial loss of income for the business?

Product liability insurance
Consequential loss insurance (correct)
Life assurance insurance
Employers liability insurance

What is the role of an insurance broker?

To work independently and identify insurable risks for a particular insurance company
To work for a particular insurance company and sell only that company's policies
To assess the risk and calculate the premium
To work independently to identify your insurable risks and give you advice on the best insurance company to go with (correct)

What is the purpose of a proposal form in the insurance application process?

To serve as the application form for insurance (D) Signup and view all the answers

What is the fee of the insurance policy?

Premium (A) Signup and view all the answers

What type of insurance pays out a lump sum when the policyholder reaches a certain age, if they are still alive?

Endowment life assurance insurance (C) Signup and view all the answers

What is the primary purpose of a person paying a premium to an insurance company?

To receive compensation in the event of a financial loss (A) Signup and view all the answers

Why is insurance important for a business?

It protects the business from financial losses and ensures survival (C) Signup and view all the answers

What type of insurance is compulsory for employees and employers?

PRSI (Pay-Related Social Insurance) (B) Signup and view all the answers

What is the primary goal of risk management in a business or household?

To reduce the likelihood of a risk occurring and to resolve it quickly when it does (D) Signup and view all the answers

What does motor insurance provide for a business?

Legal requirement for motor tax (C) Signup and view all the answers

What is the primary purpose of fidelity guarantee insurance for a business?

To protect against fraud or dishonesty by an employee (B) Signup and view all the answers

What is the primary purpose of insurance in a business or household?

To provide a financial safety net in case of a risk occurring (A) Signup and view all the answers

What is the benefit of having life assurance for a household?

It enhances savings for the household (D) Signup and view all the answers

What is a key method of risk reduction in a business or household?

Implementing security devices and systems (C) Signup and view all the answers

What is the primary difference between household and business insurance?

The type of risks covered (D) Signup and view all the answers

How can an insurance company settle a claim?

By negotiating a settlement with the policyholder (D) Signup and view all the answers

What is the primary purpose of taxation in a business or household?

To generate revenue for the government (D) Signup and view all the answers

What is the primary basis for determining the fee of an insurance policy?

The level of risk, value of the item, and loadings (B) Signup and view all the answers

What is the purpose of a cover note in the insurance process?

To provide proof of insurance contract before the policy is issued (B) Signup and view all the answers

What principle of insurance ensures that a person cannot make a profit from insurance?

Indemnity (B) Signup and view all the answers

What document must be completed when making a claim, describing the details of what happened and the amount of loss suffered?

Claim form (B) Signup and view all the answers

What is the role of an assessor in the insurance process?

To assess the damage and decide how much compensation will be paid out (A) Signup and view all the answers

What is the significance of insurable interest in the insurance process?

It ensures that the policyholder has a financial interest in the item being insured (C) Signup and view all the answers