Name:
Subject: Principles of Business
Topic: Legal Aspects of a Business- Insurance
Insurance
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Differentiate between Insurance and Assurance
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Explain the term “Pooling of risks”
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Principles of Insurance
a) Utmost good faith
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b) Insurable interest
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c) Proximate cause
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d) Indemnity
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e) Subrogation
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f) Contribution
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Types of Insurance Policies
There are two main categories of insurance:
1. Life insurance
2. Non- life insurance
Life insurance policies
a) Whole life policies
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b) Term policies
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c) Endowment Policies
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Non- life insurance policies
i. Marine insurance
a) Hull insurance
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b) Cargo Insurance
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c) Freight insurance
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d) Shipowner’s liability insurance
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ii. Fire Insurance
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iii. Accident Insurance
Motor Insurance
a) Third party cover
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b) Third party fire and theft
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c) Full comprehensive
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Aviation Insurance
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Personal accident and sickness
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Liability Insurance
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a) Employer’s Liability
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b) Public liability
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Property
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Fidelity guarantee
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Credit
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Business Interruption
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Other important terms:
a) Premium
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b) Policy
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c) Insured
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d) Insurer
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e) Proposal
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f) Claim
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Jobs in the insurance industry:
a) Actuary
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b) Underwriter
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c) Adjuster
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How does insurance facilitate trade?
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