insurance
a written agreement between an individual and an insurance company. It states that the insurance company will pay compensation to the individual if that person suffers a loss
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| Term | Definition |
|---|---|
| insurance | a written agreement between an individual and an insurance company. It states that the insurance company will pay compensation to the individual if that person suffers a loss |
| premium | the fee paid by the insured to the insurer |
| insurance policy | the insurance contract between the insurer and the insured |
| household insurance (types) | home insurance, life insurance, car insurance and personal insurance |
| principles of insurance ( name them) | utmost good faith, indemnity, subrogation , contribution and insurable interest |
| utmost good faith | you must tell the truth when answering questions |
| indemnity | a person cannot profit from insurance |
| subrogation | the insurance company can sell any damaged item and can sue a third party involved in the loss |
| contribution | only one insurance company can insure an item |
| insurable interest | the insurable item must hold value |
| loading | amount added to premium due to risk |
| no claims bonus | a discount received for not making a claim on car insurance that is deducted from premium |