Insurance Basics for Business and Household

Play an AI-generated podcast conversation about this lesson

What is the basis of an insurance fee?

Only the value of the item
Level of risk and value of the item, including loadings (correct)
The address of the policyholder
The age of the policyholder

What is a cover note?

A permanent document issued by the insurance company
A policy that has expired
A temporary document issued by the insurance company (correct)
A policy that has been cancelled

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

To complete the claim form on behalf of the policyholder
To decide whether to accept or reject a claim
To provide advice on how to prevent similar incidents in the future
To assess the damage and decide on the amount of compensation (correct)

What is the principle of insurable interest?

The policyholder must benefit from the existence of the item and suffer from its loss (C) Signup and view all the answers

What is the principle of utmost good faith?

The policyholder must disclose all relevant information on the proposal form (D) Signup and view all the answers

What is the principle of indemnity?

The policyholder can only be compensated for the value of the item at the time of the loss (C) Signup and view all the answers

What is the principle of subrogation?

The insurance company is entitled to take possession of the item involved in the claim (D) Signup and view all the answers

What is one way that insurance companies settle claims?

All of the above (D) Signup and view all the answers

Which type of insurance provides financial protection if a fire causes a major financial loss in a factory?

Consequential loss (B) Signup and view all the answers

What type of insurance payout is given to a beneficiary when the insured individual dies?

Life assurance (B) Signup and view all the answers

Which insurance compensates for harm or loss due to the use of a firm's product?

Product liability insurance (B) Signup and view all the answers

What's the main role of an insurance broker?

Identifies insurable risks and gives insurance advice (A) Signup and view all the answers

What does mortgage protection insurance cover?

Covers a mortgage if the person dies without paying it off (A) Signup and view all the answers

During the insurance process, what is the proposal form used for?

As an application for insurance (C) Signup and view all the answers

What does property insurance typically cover in a business setting?

Fire, flood, burst pipes, and theft (B) Signup and view all the answers

What is a legal requirement for any vehicle used by a business?

Motor tax (A) Signup and view all the answers

Which insurance provides compensation for workers unable to work due to illness?

Health insurance (A) Signup and view all the answers

What type of insurance protects a business against a loss of a valuable staff member?

Key person insurance (B) Signup and view all the answers

Which insurance covers items like cash and valuables while on the premises and in transit from business to bank?

Property insurance (D) Signup and view all the answers

Why might a business choose to have public liability insurance?

To protect against accidents injuring the public (A) Signup and view all the answers

What does fidelity guarantee insurance protect against?

Employee fraud or dishonesty (C) Signup and view all the answers

What is PRSI and what does it cover?

Compulsory insurance for unemployment benefit, pensions, and maternity benefit (C) Signup and view all the answers