Insurance WAEC

Common Insurance Terminologies

Übersicht

Insurance has a private language. A trader says the fire destroyed goods worth two million naira; the insurer replies with words like average, excess, salvage and material fact, and suddenly the cheque is for a different figure. None of it is trickery. Each of those words is a precise technical term, and using the wrong one, in an examination or at a claims desk, changes the meaning completely.

This lesson gives you that language, but not as a list to memorise. You will learn the core terms grouped into the four families they belong to: the words that measure and limit a claim, the words about honesty when the contract begins, the words for the documents themselves, and the words for how the market accepts and prices a risk. Learn each term beside its family and you will never confuse an excess with a franchise, or a warranty with a representation, again.

Ziele

  1. Define the common terms used in insurance practice and use each correctly in context
  2. Explain the terms relating to cover, including sum insured, excess, franchise and average
  3. Explain the terms relating to claims, including salvage, ex gratia payment and abandonment
  4. Explain the terms relating to the market, including underwriting, premium, endorsement and warranty
  5. Use the correct technical term when describing a given insurance situation

Mindmap

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

Lernkarten

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

Lektionshinweis

Two candidates sit the same paper. Both know that a fire destroyed a warehouse and that the owner had under-insured the stock. One writes that the insurer will apply the excess and reduce the claim; the other writes that the insurer will apply average. Only the second is correct, and the difference is a whole set of marks. Insurance is a subject of exact words. A term used loosely is a term used wrongly, and examiners test that precision every single year. The good news is that the vocabulary is not random: every term earns its place by serving one of a small number of underlying principles. Learn the principle and the words fall into place.

Unterrichtsbewertung

Herzlichen Glückwunsch zum Abschluss der Lektion über Common Insurance Terminologies. 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 voluntary payment made by an insurer in respect of a loss for which it is not technically liable under the policy is called: A. A franchise B. An ex gratia payment C. A rebate D. An excess Answer: B
  2. The written document used to alter the terms of a policy that is already in force is the: A. Proposal form B. Cover note C. Endorsement D. Certificate Answer: C
  3. A policy is subject to a franchise of 60,000 naira. A loss of 50,000 naira occurs. How much will the insurer pay? A. 50,000 naira B. 10,000 naira C. 60,000 naira D. Nothing Answer: D
  4. Which of the following terms belongs to the principle of utmost good faith? A. Salvage B. Material fact C. Franchise D. Reinstatement Answer: B
  5. A car insured for 1,200,000 naira is a total loss. The insurer pays the claim in full and later sells the wreck for 200,000 naira. The insurer's net cost is: A. 1,400,000 naira B. 1,200,000 naira C. 1,000,000 naira D. 200,000 naira Answer: C

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.

Wiederholungsfragen

Fragen Sie sich, wie frühere Prüfungsfragen zu diesem Thema aussehen? Hier sind n Fragen zu Common Insurance Terminologies aus den vergangenen Jahren.

WAEC SSCE - Insurance - 2016

Frage 1 Bericht

Explain the following terms as used in insurance business:

(a) Surrender value

(b) Days of grace

 (c) Ex-gratia payment

 (d) Endorsement

(e) Disclosure.
 

Antwortdetails

Meaning of the terms as used in insurance business:

  1. Surrender value: This is the cash sum that a life assurance company pays to a policyholder who chooses to terminate (surrender) his policy before it matures. It represents the accumulated value of premiums paid, less the insurer's charges and expenses, and is available only on policies that have run long enough to acquire a value.
  2. Days of grace: This is the extra period, usually fifteen or thirty days, allowed by the insurer after the premium due date within which the policyholder may still pay the renewal premium without the policy lapsing. Cover continues during this period.
  3. Ex-gratia payment: This is a payment made by the insurer to the insured out of goodwill, and not because the insurer is legally liable under the policy. The insurer pays as a favour, without admitting liability, often to preserve goodwill.
  4. Endorsement: This is a written amendment or clause attached to a policy to alter its original terms, for example to add or remove an item, change the sum insured or correct the details of the insured. It becomes part of the contract.
  5. Disclosure: This is the duty, under the principle of utmost good faith, of the proposer to reveal to the insurer all material facts that would influence the insurer's decision to accept the risk or fix the premium, whether asked for or not.
Antwort anzeigen