Insurance WAEC

Insurance Renewals

Übersicht

Most general insurance runs for one year and then quietly ends. If you want the cover to carry on, you have to renew it, and the few weeks around each renewal date decide whether you are protected or exposed. Miss the date on a motor policy and you are not merely uninsured, you are breaking the law the moment you drive out of your compound.

In this lesson you will learn what a renewal notice is and why insurers send one, the step by step renewal procedure, and the meaning of the days of grace (and the classes they do not cover). You will see how a no claim discount rewards careful policyholders, why a trader might sign a long-term agreement, and exactly what a policyholder loses by letting a policy lapse. Worked calculations show you how examiners test each of these.

Ziele

  1. Explain the purpose of a renewal notice and describe the renewal procedure
  2. Explain the operation and purpose of a no claim discount
  3. Describe a long-term agreement and state the benefit to the insured and to the insurer
  4. Explain the consequences of allowing a policy to lapse at renewal

Mindmap

Dieses Thema ist als Karte dargestellt, damit die Zusammenhange sichtbar werden.

Lernkarten

Schnelles Abfragen der Fakten, die zu diesem Thema gepruft werden.

Lektionshinweis

Musa runs a provisions store in Kano and insures the shop and stock against fire. One busy December the renewal date slips past him. Three weeks later a faulty socket sets the storeroom alight and the stock is lost. Musa reaches for his policy expecting a cheque and discovers there is no live cover to claim against: the policy expired, he never paid the renewal premium, and a fire policy does not simply carry on by itself. Renewal is not paperwork you can ignore. It is the act that keeps your protection alive from one year to the next, and the rules around it decide who is covered and who is not.

Unterrichtsbewertung

Herzlichen Glückwunsch zum Abschluss der Lektion über Insurance Renewals. Jetzt, da Sie die wichtigsten Konzepte und Ideen erkundet haben,

Sie werden auf eine Mischung verschiedener Fragetypen stoßen, darunter Multiple-Choice-Fragen, Kurzantwortfragen und Aufsatzfragen. Jede Frage ist sorgfältig ausgearbeitet, um verschiedene Aspekte Ihres Wissens und Ihrer kritischen Denkfähigkeiten zu bewerten.

Nutzen Sie diesen Bewertungsteil als Gelegenheit, Ihr Verständnis des Themas zu festigen und Bereiche zu identifizieren, in denen Sie möglicherweise zusätzlichen Lernbedarf haben.

  1. A renewal notice is best described as a document which: A. Legally compels the insurer to renew the policy B. Reminds the policyholder that the policy is due for renewal and invites payment C. Transfers the policy to a new insurer D. Cancels the existing policy Answer: B
  2. Days of grace at renewal do NOT apply to: A. Fire insurance B. Life assurance C. Motor insurance D. Household contents insurance Answer: C
  3. A no claim discount is granted to a policyholder who: A. Insures for less than the full value B. Made no claim during the preceding period of insurance C. Pays the premium in one lump sum D. Holds more than one policy with the insurer Answer: B
  4. A basic motor premium is 80,000 naira and the policyholder has earned a 25% no claim discount. The renewal premium payable is: A. 80,000 naira B. 60,000 naira C. 55,000 naira D. 20,000 naira Answer: B
  5. The main benefit of a long-term agreement to the insured is: A. Freedom to change insurer at any time B. A discount on the premium for each year of the agreement C. Exemption from paying any premium D. Automatic increase in the sum insured Answer: B

Empfohlene Bücher

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Untertitel: Thirteenth edition
Verleger: Pearson
Jahr: 2016
ISBN: 978-0-13-408257-8
Beschreibung: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Untertitel: Tenth edition
Verleger: Wiley
Jahr: 2008
ISBN: 978-0-470-08753-4
Beschreibung: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Untertitel: Second edition
Verleger: Himalaya Publishing House
Jahr: 2017
ISBN: 978-93-5097-079-9
Beschreibung: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.