Classwork

Topic: Insurance (Chapter 18, 19 and 20)

Define the terms given below.

1) Insurance policy 27) consequential loss insurance

2) Claim 28) employer’s liability insurance

3) insured 29) public liability insurance

4) insurer 30) product liability insurance

5) insurance premium 31) Fidelity guarantee insurance

6) indemnity 32) Credit insurance

7) contribution 33) Plate glass insurance

8) subrogation 34) Proposal form

9) insurable interest 35) cover note

10) utmost good faith 36) certificate of insurance

11) claim form 37) Insurance endorsement

12) Loss adjuster 38) Life assurance

13) actuary 39) exclusion clauses

14) assessor 40) insurance agent

15) non-insurable risks 41) underwriter

16) insurable risks 42) insurance broker

17) Premises insurance 43) syndicates

18) Theft insurance

19) Motor insurance

20) Third party insurance

21) Comprehensive insurance

22) Marine insurance

23) Hull insurance

24) Cargo insurance

25) Freight insurance

26) Ship owner’s liability insurance

Definition

1) insurance policy-a contract between insured and insurer

2)claim-when the insured contacts the insurer for compensation

3)insured- the business or individual who purchased insurance policy

4)insurer-an entity/organization providing insurance

5) insurance premium- a amount paid to the insurer for insurance protection

6)indemnity- protection against possible loss of financial burden

7)contribution-a principal that allows the insured to cover the same risk from multiple insurer

8)subrogation-when insured individual paid out with compensation the wreckage will belong to the
insurer

9)insurable interest-a principle that stops individuals from taking out insurance cover for other parties to
profit off their bad luck

10)utmost good faith-both parties of the insurance contact should be honest when giving the
information

11)claim form – a document used to claim compensation

12)loss adjuster – a person employed by the insurance company who ensures the compensation is fair.

13)actuary – a specialist who helps calculate premium by analyzing the risks.

14)assessor – a person appointed by insurer to negotiate the insurance claim with the insurer.

15)non-insurable risks – risks that cannot be insured. cover note

16)insurable risks – risks that can be insured / calculated mathematically.

17) Premises insurance – covers the risk of damages of the property.

18) Theft insurance – it is an insurance that covers loss due to theft.

19) Motor insurance – insurance that covers damage occurred to a vehicle during an accident or any
other problem.

20) Third party insurance – insurance that provides claim for third-parties.

21) Comprehensive insurance – cover for accidental damage including fire damage to the insured vehicle
and the third party claim

22) Marine insurance – insurance covering any loss or damages to ships or cargo.

23) Hull insurance – insurance covering ships infrastructure.

24) Cargo insurance – covers the loss of ships cargo or damage during transit.
25) Freight insurance – protects policyholder against loss of the freight money due to undelivered cargo

26) Ship owner’s liability insurance – protects the ship owner from hazardous events related to shipping.

27) consequential loss insurance – covers for the loss of business income if a business is unable to trade
for a period of time.

28) employer’s liability insurance – cover which is required by law to provide compensation to
employees injured at work.

29) public liability insurance – covers cost of legal actions and against the claims of third parties.

30) product liability insurance – insurance cover for the cost of damages resulted from a faulty product.

31) Fidelity guarantee insurance – specialized insurance policy designed to protect employers for loss of
money or dishonesty by employees.

32) Credit insurance – Guarantees a lender will be repaid if a borrower is unable to pay his debt
(protection against bad debt)

33) Plate glass insurance – Providing a cover against crack or smash of windows (any damages related to
windows)

34) Proposal form – Application form for the insured given by the insurance company

35) Cover note- Is a temporary document provided by the insurance company until the actual policy is
released

36) Certificate of insurance- It is a document that proves that the insured owns the insurance policy

37)Insurance Endorsement – Changes made to the insurance policy

38)Life assurance – Insurance pay out the money in the event of death of the insured

39) Exclusion clauses- Statements that make it clear that the insured cannot claim for certain specific
reason

40) Insurance agent – An individual or company that sells insurance working on behalf of the insurance
company

41) Underwriter – An individual or company that bears the risk in business.

42) Insurance Broker – A person or business who operate as an intermediary between insurer and
insured

43) Syndicate- A group of underwriters that share the risk in the insurance