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In relation to Insurance explain the following: Broker Premium - Leaving Cert Home Economics - Question 10 - 2006
Question 10
In relation to Insurance explain the following: Broker Premium
Worked Solution & Example Answer:In relation to Insurance explain the following: Broker Premium - Leaving Cert Home Economics - Question 10 - 2006
Step 1
Broker
Answer
A broker is an individual or firm that acts as an intermediary between clients and insurance companies. They provide expertise on various aspects of insurance, including policy options, coverage levels, and pricing. Brokers analyze clients' needs and help them select the most suitable insurance policies, often advocating for the client's best interests and negotiating terms with insurance providers.
Step 2
Premium
Answer
A premium is the sum of money that an individual or business must pay annually or in installments to an insurance company in exchange for coverage. This payment is essential to keep the policy active and is calculated based on factors such as coverage level, risk assessment, and the insured's history. The premium can vary significantly based on the type of insurance and the specific risk associated with the insured party.