Insurance Services — Flashcards

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Risk is the possibility of loss or damage due to factors over which the businessman has little or no control. In business, risk may arise from fire, theft, accidents, transport loss, market changes, o…

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Insurance is a contract in which the insurer undertakes to pay the insured a fixed amount on the happening of a certain event, or compensate actual loss, in exchange for premium. It helps shift risk f…

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Insurance spreads the loss of a few insured people among many who pay premium. This means the burden of a large loss does not fall on one person alone. The insurer collects premium from many and pays …

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Insurance helps the economy in several ways. Premium money is invested in securities issued by companies and the Government, which supports national development. It also creates employment directly in…

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The four broad types are Life Insurance, Fire Insurance, Marine Insurance, and Other types of insurance. Other types include motor vehicles insurance, burglary insurance, fidelity insurance, personal …

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Life insurance is a contract in which the insurer pays a certain sum on the death of the insured or after a certain period. It is also called life assurance because the risk insured against is certain…

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A whole-life policy runs for the whole life of the insured, and premium is payable all along. The sum assured becomes payable to the heirs only after the death of the insured.

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An endowment policy runs for a limited period or up to a certain age of the insured. The sum assured becomes payable at the end of the specified period or earlier on the death of the insured.