types of insurance

Principles of Business (Level 40)

Name: ___________________________________

1. What are the five types of insurance?

_____________ ______________ ________________ _________________ _______________

2. What is the difference between insurance and assurance?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

3. What are two main types of assurance? ____________________ _____________________

4. Explain the difference between the two types of life assurance.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5. List the four (4) types of Marine Insurance.

__________________ __________________ ____________________ _____________________

6. Explain any two (2) types of Marine Insurance.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________________________________________

7. Distinguish between third party and fully comprehensive motor insurance.

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8. Explain the following terms: Employers’liability________________________________________________________________

________________________________________________________________________________

Public liability____________________________________________________________________

________________________________________________________________________________

Aviation insurance_________________________________________________________________

________________________________________________________________________________

Fidelity__________________________________________________________________________

________________________________________________________________________________

Mortgage Guarantee_______________________________________________________________

________________________________________________________________________________

Annuity Scheme___________________________________________________________________

________________________________________________________________________________

Credit insurance___________________________________________________________________

________________________________________________________________________________

Consequential loss insurance_________________________________________________________

________________________________________________________________________________

Direct loss insurance_______________________________________________________________

________________________________________________________________________________

9. List four (4) types of insurance that businesses may invest in:

_________________ _________________ ____________________ ___________________

10. State on type of insurance which you would recommend for each of the following. Give reason for your answer.

No.	Situation	Type of Insurance	Reason for type of insurance chosen
1	A factory engaged in manufacturing a highly inflammable product.
2	A firm employing six sales reps. each of whom drives a company car.
3	A business employing people handling a large amount of cash.
4	A partner in a firm of lawyers.
5	Mrs. Jones wants a policy that would enable her to benefit from the proceeds during her lifetime.
6	Edmond wants to insurance his business against possible theft by public.