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What is insurance
It offer’s protection against possible loss And tries to put the insured person back in the same financial position they were in before the loss occurred
Explain the term compensation
It is a financial payment made to an insured person if they suffer an insured loss
Explain the term premium
The amount paid by the insured person to an insurer in return for providing insurance
Give an example of something that would affect your home insurance premium
Thatched roof, alarm system, location, etc.
True or false: Motor insurance is an individuals choice and not compulsory bylaw.
False
Explain life assurance
Pays out when the insured person dies
What is an agent
They sell policies on behalf of only one insurance company
State two factors that affect the cost of an insurance premium.
Age, occupation, value of the item, claims history, location, type of cover.
Why would a young driver pay more for car insurance?
They are considered higher risk based on age and experience.
What is risk pooling?
it is when risks are shared among a group of individuals or entities, rather than being held by a single party.
What type of automobile insurance is MANDATORY in the state of Nebraska?
"liability insurance" This coverage must include: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for p
What is meant by premium?
The money paid for insurance - to cover the risk
Three types of insurance a family might buy
Health insurance, Life Insurance, House Insurance
Definition of insurance
Protection against financial loss caused by something that might happen.
This federal-state joint program provides healthcare coverage for the poor.
Medicaid
This federal health insurance program covers the elderly, certain disabled individuals, and individuals with end-stage renal disease
Medicare
