SEBA Class 9 An Introduction to Commerce Chapter 9 Basic Insurance Terminology Solutions in English Medium to each chapter is provided in the list so that you can easily browse throughout different chapters SEBA Class 9 An Introduction to Commerce 9 Basic Insurance Terminology Question Answer, SEBA Class 9 Elective An Introduction to Commerce Notes in English Medium and select need one.
SEBA Class 9 An Introduction to Commerce Chapter 9 Basic Insurance Terminology
Also, you can read the SCERT book online in these sections Solutions by Expert Teachers as per SEBA (CBSE) Book guidelines. SEBA Class 9 An Introduction to Commerce Chapter 9 Basic Insurance Terminology Notes. These solutions are part of SCERT All Subject Solutions. Here we have given Elective An Introduction to Commerce Class 9 SEBA Solutions for All Chapters, You can practice these here.
Basic Insurance Terminology
Chapter – 9
| UNIT – III INSURANCE |
| Questions |
1. What do you mean by Insured and Insurer?
Ans: Insured: The person who takes up the insurance policy on the life of self or others, goods, property etc. Is called insured.
Insurer: The insurance company which undertakes the insurance of an individual or a group or an institution, is called an insurer. The insurer undertakes to compensate for the loss of life, goods, property of the insured according to the terms and conditions specified in the insurance policy.
2. What is Insurance Assurance?
Ans: Insurance Assurance is a contract or agreement under which one party agrees to undertake the risk of life or property of another party and to compensate if such risk arises against the monetary consideration.
3. What is an Insurance Premium?
Ans: Premium is the amount of money paid or payable by the insured person/party to the insurance company while purchasing an insurance policy.
4. What do you mean by Contribution?
Ans: Contribution is a rule that specifies what happens when a person buys insurance from multiple companies to cover the same event and that event occurs.
5. What is Reinsurance?
Ans: Reinsurance is the insurance, that is purchased by an insurance company in which some parts of its own insurance liabilities is passed to an another insurance company. By reinsurance, an insurance company minimises its risk by transferring it to another company.
6. Write short notes on (in few lines):
(a) Indemnity.
Ans: It is the amount of compensation in legal sense against any damage or loss by one party (insurance company) to compensate the other party (policy holder).
(b) Utmost Good Faith.
Ans: It means all parties to an insurance contract must deal in good faith, transparency of terms & conditions and making full declaration of material fact in the insurance policy.
(c) Insurable Interest.
Ans: When an insured person or party derives any financial benefit without any damage on the existing insurance policy i.e. goods or property both at the time of taking insurance policy as well as at the time of claiming the loss.
(d) Peril.
Ans: A specific risk cause of loss covered by an insurance policy such as fire, wind storm, flood, theft etc. A peril policy covers the policyholder only for the risk named in the insurance policy.
(e) Agent.
Ans: An agent is the person who represents an insurance company and sells insurance policies to the public on behalf of the company. Agent acts as a middleman between the insurance company and the person availing the insurance policy.
(f) Broker.
Ans: Brokers are the person or individual who sells insurance product belonging to different company in the market. They do not involve with one particular company and sell products based on the requirements of the customers.
(g) Claim.
Ans: An insurance claim is a formal request to an insurance company for compensation against covered loss of policyholder. Claim arises only when any unexpected event occurs which is covered by the insurance policy.
(h) Warranty.
Ans: A warranty is a promise by the insured party to the policyholder that the statements affecting the validity of the contract are true.
(i) Risk.
Ans: In insurance term, risk is the chance of something harmful or unexpected that could happen. This might involve loss, theft or damage of any valuable property and may involve something be injured.
(j) Grace Period.
Ans: In insurance, grace period means the extension of the time period after the premium is due in which a policyholder can make a premium payment without coverage lapsing.
(k) Assurance.
Ans: Assurance is very much similar to insurance but the term assurance is used in case of Life Insurance Company only. Under it, compensation is paid whether event occurs or not.
