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What is meant by premium?
The money paid for insurance - to cover the risk
Subrogation
Once an insurance company has paid compensation for any insured item, the right of ownership of that item passes to the insurance company.
Three types of insurance a family might buy
Health insurance, Life Insurance, House Insurance
What does upmost good faith mean?
When applying for insurance the applicant must disclose all material facts.
What is meant by indemnity?
You cannot make a profit from an insurance claim
What is meant by compensation?
Payment made to an insured person who has suffered a loss.
Definition of insurance
Protection against financial loss caused by something that might happen.
What is meant by contribution?
If you insure an asset with a number of insurance companies, you will not receive compensation from each.
Insurable interest
To insure something, you must benefit from its existence and suffer (financially) from its loss.
What is meant by Average Claues?
This states that if something is insured for only a portion its value, the insurer is only liable for the same portion of the loss.
Definition of assurance
Protection against something that might happen
Insurance broker
A broker helps households and individuals to get the insurance that best fits their needs and their budget.
Agent
An agent sells policies on behalf of only one insurance company.
Actuary
An actuary is employed by the insurance company to decide on the premium that should be charged.
