Topic 7 Insurance

What is insurance?

• A payment to protect you against something bad happening
• a pension for old people
• an investment in a company

Give an example of COMPULSORY Insurance.

• Car
• Travel
• Health
• Pet

Insurance brokers:

• Find the best insurance deals for you.
• Sell their own type of insurance door to door
• Are PPI
• Ask you to use the internet to compare

The difference between insurance and assurance is:

• Assurance WILL happen
• Assurance WILL NOT happen
• Insurance WILL happen
• Insurance WILL NOT happen

Bob buys an insurance policy against his house catching fire. What is the payment called to the insurance company?

• Premium
• Payment
• Policy
• Price

Insurance providers can be:

• Banks, building societies
• Supermarkets
• Motoring organisations - AA and RAC
• Insurance companies like Aviva, Direct Line, Churchill
• Garages

What does indemnity mean?

• You can't make a profit out of insurance
• You can make a profit out of insurance

What is IPT

• Insurance Premium Tax
• Indemnity Premium Tax
• Investment Premium Tax

An example of something that would NOT be insured is:

• Winning the national lottery
• Theft
• House fire
• Accident on holiday
• Pet operation and visits to the vets

What is a material fact?

• An important piece of information that should be shared with the insurance company, like you have a terminal illness.
• Information that you don't have to share with the insurance company when they are assessing the risk.