Theory question 108
InsuranceCommerce 2 (answer any five questions)
(a) Give five reasons why a life assurance policy may be taken.
(b) Describe any five insurance policies which a large department shop owner may take.
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(a) Any five: to provide for dependants if the assured dies; as a form of saving (endowment); to provide money for old age/retirement; to pay for children's education; it can be used as collateral for a loan; tax relief on premiums; to repay a mortgage or debt on death; to provide funds for funeral expenses; surrender value available in an emergency.
(b) Any five, described: fire insurance – building and stock against fire; burglary/theft insurance – stock and cash against theft; fidelity guarantee – against fraud or theft by employees; employers' liability – claims by injured staff; public liability – injury to customers on the premises; cash-in-transit insurance; plate-glass insurance – shop windows and display glass; motor insurance – delivery vans; consequential loss – loss of profit after a fire; goods-in-transit insurance; group life/personal accident for staff.
In (b) say what risk each policy covers for the shop.