Insurance - Essential Principles of Business (Chapter 11)

Which Act (law) applies to regulating the Insurance industry in The Bahamas?

• Companies Act (1972)

• Insurance Act (2005)

• Financial Transactions Reporting Act (2018)

• Proceeds of Income Act (2018)

What is the name of the entity which oversees and regulates Insurance in The Bahamas?

• The National Insurance Board of The Bahamas

• The Office of The Prime Minister

• The Insurance Commission of The Bahamas

• The Ministry of Finance

Insurance companies provide compensation if something unfortunate happens. What does COMPENSATION mean?

• To get a premium

• To get payment

• To pool risks

• To protect

Insurance provides a system of providing compensation to those who suffer a __________.

Insurance provides individuals and businesses with protection against a wide variety of

_______.

The AGREEMENT or CONTRACT which is made between the insurer and the insured is called a ________

• premium

• indemnity

• pool

• policy

When an individual gets insurance they are the ______ and the insurance company is the _______.

• policy, premium

• insured, insurer

• insurer, insured

• policy holder, beneficiary

The charge one must pay per month to the insurance company, in order to have insurance is called a __________

• Policy

• Indemnity

• Premium

• Benefit

Putting someone who has suffered an unfortunate event, back into the position they would have been had the event not happened is called the Principle of

Answer explanation

(page 149) Insurance aims to put you back in the position you were before the loss happened. For example, my SUV (jeep) was stolen (a loss). I had Car Insurance...so the insurance company paid me enough money to buy another car.

Insurance companies take the monthly payments of many individuals and puts all of it into one large pool of funds. This is a called 'pooling of _____'.

• funds

• risks

• losses

• premiums