Podcast
Questions and Answers
What is the primary purpose of insurance?
What is the primary purpose of insurance?
- To ensure profits for the insurance company
- To cover all past losses irrespective of their cause
- To provide financial support for future and accidental losses (correct)
- To protect against deliberate losses only
Which type of insurance generates over 50% of P&C premiums in Canada?
Which type of insurance generates over 50% of P&C premiums in Canada?
- Automobile Insurance (correct)
- Property Insurance
- Liability Insurance
- Health Insurance
What distinguishes private insurers from government insurers in Canada?
What distinguishes private insurers from government insurers in Canada?
- Private insurers are owned by the government
- Only private insurers can issue liability insurance
- Government insurers provide lower premiums
- Private insurers are focused on generating profits (correct)
What is a mutual insurance company primarily focused on?
What is a mutual insurance company primarily focused on?
What may insurance companies choose to offer in lieu of repairing or replacing damaged items?
What may insurance companies choose to offer in lieu of repairing or replacing damaged items?
What is a consequence of allowing individuals to purchase insurance after a loss?
What is a consequence of allowing individuals to purchase insurance after a loss?
In the context of property and casualty insurance, what is NOT a type of coverage provided?
In the context of property and casualty insurance, what is NOT a type of coverage provided?
What was the primary contribution of Hermann Ebbinghaus to psychology?
What was the primary contribution of Hermann Ebbinghaus to psychology?
Stock insurance companies primarily derive their operating funds from what source?
Stock insurance companies primarily derive their operating funds from what source?
How can students mitigate the effects of the forgetting curve?
How can students mitigate the effects of the forgetting curve?
What does the forgetting curve illustrate?
What does the forgetting curve illustrate?
What is a key expectation for students during the course?
What is a key expectation for students during the course?
What is one historical example mentioned regarding the origins of insurance?
What is one historical example mentioned regarding the origins of insurance?
Which of the following is part of the basic licensing training for new brokers?
Which of the following is part of the basic licensing training for new brokers?
What level of broker is associated with obtaining the CAIB designation?
What level of broker is associated with obtaining the CAIB designation?
Which of the following was a method used by Chinese boat operators in 5000 BC to manage risk?
Which of the following was a method used by Chinese boat operators in 5000 BC to manage risk?
Which of the following is a characteristic of the Direct Writing System in insurance distribution?
Which of the following is a characteristic of the Direct Writing System in insurance distribution?
What percentage of insurance in Canada is sold through the Independent Brokerage System?
What percentage of insurance in Canada is sold through the Independent Brokerage System?
Which of the following is NOT a role of independent brokerages in the insurance distribution process?
Which of the following is NOT a role of independent brokerages in the insurance distribution process?
In the Agency System, how are agents primarily compensated?
In the Agency System, how are agents primarily compensated?
What is true about Lloyd’s of London?
What is true about Lloyd’s of London?
Which provinces in Canada have compulsory auto insurance coverages?
Which provinces in Canada have compulsory auto insurance coverages?
What is a primary characteristic of brokers in the Independent Brokerage System?
What is a primary characteristic of brokers in the Independent Brokerage System?
What distinguishes independent brokers from agents in the Agency System?
What distinguishes independent brokers from agents in the Agency System?
What is the primary function of syndicates in marine insurance?
What is the primary function of syndicates in marine insurance?
What role do underwriting agents play in syndicates?
What role do underwriting agents play in syndicates?
What is the main purpose of the 'slip' in the insurance distribution process?
What is the main purpose of the 'slip' in the insurance distribution process?
How is membership to Lloyd's open?
How is membership to Lloyd's open?
What happens once 100% of the risk is subscribed in the underwriting process?
What happens once 100% of the risk is subscribed in the underwriting process?
What is one primary function of insurance related to financial loss?
What is one primary function of insurance related to financial loss?
How does insurance serve as a basis for the credit system?
How does insurance serve as a basis for the credit system?
Which of the following is NOT a function of the insurance industry?
Which of the following is NOT a function of the insurance industry?
What does the principle of indemnity in insurance dictate?
What does the principle of indemnity in insurance dictate?
What is one of the risks that insurance helps individuals manage?
What is one of the risks that insurance helps individuals manage?
What does the concept of avoidance refer to in insurance?
What does the concept of avoidance refer to in insurance?
Which group of professionals are notably employed by insurance companies?
Which group of professionals are notably employed by insurance companies?
Which of the following describes the function of loss prevention in the insurance industry?
Which of the following describes the function of loss prevention in the insurance industry?
Flashcards
Forgetting Curve
Forgetting Curve
The decline of remembering information over time without review or repetition.
Insurance
Insurance
A commitment to compensate for financial losses from specific risks.
Risk Sharing
Risk Sharing
Pooling resources to cover losses experienced by some members of a group.
Indemnity
Indemnity
Signup and view all the flashcards
Fire Insurance
Fire Insurance
Signup and view all the flashcards
Active Participation
Active Participation
Signup and view all the flashcards
Lloyd's of London
Lloyd's of London
Signup and view all the flashcards
Private Insurers
Private Insurers
Signup and view all the flashcards
Independent Brokerage System
Independent Brokerage System
Signup and view all the flashcards
Direct Writing System
Direct Writing System
Signup and view all the flashcards
Liability
Liability
Signup and view all the flashcards
Risk
Risk
Signup and view all the flashcards
Perils
Perils
Signup and view all the flashcards
Property Insurance
Property Insurance
Signup and view all the flashcards
Course Expectations
Course Expectations
Signup and view all the flashcards
Study Expectations
Study Expectations
Signup and view all the flashcards
Functions of Insurance
Functions of Insurance
Signup and view all the flashcards
Government Insurers
Government Insurers
Signup and view all the flashcards
Agency System
Agency System
Signup and view all the flashcards
Study Notes
The Forgetting Curve
- Hermann Ebbinghaus developed the concept of the forgetting curve, illustrating the loss of learned information over time.
- Regular review and study are critical for retaining information; intervals between learning and assessment increase the likelihood of forgetting.
Course Expectations and Participation
- Active participation in course activities is encouraged to facilitate learning.
- Students should prepare by studying at home, posing questions in class, and reviewing content weekly.
Insurance Overview
- Insurance operates on the principle of risk sharing, allowing individuals to pool resources for support during times of need.
- The history of fire insurance began after the Great Fire of London in 1666, highlighting the need for formal risk management.
Functions of Insurance
- Spread the Risk: Losses are shared among many participants, allowing individuals to pay into a common fund for collective protection.
- Support Credit Systems: Insurance access enables consumers to obtain credit by protecting their investments.
- Eliminate Worry: Insurance encourages entrepreneurship by mitigating financial risks through manageable premiums.
- Loss Prevention: Through education and campaigns, the insurance industry works to prevent losses and minimize their impact.
- Employment Source: The insurance sector is a significant employer, supporting various professions like law, medicine, and construction.
Definition and Analysis of Insurance
- Insurance involves a commitment by one party to indemnify another against financial losses resulting from specific risks.
- Payments under insurance only occur when these identified risks manifest.
- The principle of indemnity ensures that compensation equals the actual loss experienced, preventing profit from insurance claims.
Property and Casualty Insurance in Canada
- Types of Insurance: Includes automobile, property, and liability coverage.
- Private Insurers: Made up of stock and mutual companies, provide the majority of insurance in Canada.
- Government Insurers: Offer mandatory coverages, including auto insurance, with some competition from private insurers.
Distribution of Insurance
- Direct Writing System: Insurers employ producers to sell limited product lines directly.
- Independent Brokerage System: Dominant in Canada, with many agents representing multiple insurance companies.
- Agency System: Agents work for one insurer but are independent in client interactions.
Lloyd's of London
- Not an insurance company but a market for underwriting, particularly for marine insurance.
- Lloyd’s operates through syndicates where underwriters assume risks collectively.
Key Terminology
- Important terms, such as liability, risk, perils, and indemnity, are critical to understanding insurance principles.
- The definitions clarify the mechanisms and responsibilities inherent in insurance contracts.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers key concepts on the forgetting curve as introduced by Hermann Ebbinghaus and the foundational principles of insurance, including risk sharing and historical context. Understanding these concepts is crucial for effective learning and participation in any course. Explore how active engagement and memory retention strategies can enhance your educational experience.
