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Ch.10 HH & bus mgmnt

Insurance and Taxation

TermDefinition
Insurance Cover against potential loss.
Risks Things that have the potential to cause serious loss.
Premium A quote for the amount that must be paid to cover the risk(s)in the proposal.
Claim The compenation request by the insured if the risk actully happens.
Proposal Form The application form for insurance.
Loading An extra charge which may be added to the premium where the risk is higher than normal.
No Claims Bonus A reduction from the price of insurance if the insured has made no claims.
Policy Contract of insurance.
Utmost Good Faith You must tell the truth.
Indemnity You cannot gain from Insurance.
Created by: EMPhelan
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