Photo AI
Explain each of the following: Insurance premium______________________________________________________________ Insurance policy_______________________________________________________________ - Leaving Cert Home Economics - Question 10 - 2017
Question 10
Explain each of the following: Insurance premium______________________________________________________________ Insurance policy____________________________________... show full transcript
Worked Solution & Example Answer:Explain each of the following: Insurance premium______________________________________________________________ Insurance policy_______________________________________________________________ - Leaving Cert Home Economics - Question 10 - 2017
Step 1
Insurance premium
Answer
An insurance premium is the sum of money paid annually or in instalments to the insurance company to maintain an active insurance policy. This payment is essential for covering potential risks and ensuring that the insured is protected against unforeseen events. The amount of the premium may vary based on factors such as the type of insurance, the extent of coverage, and the risk associated with the insured.
Step 2
Insurance policy
Answer
An insurance policy is a written document detailing the terms and conditions of insurance cover. It outlines the rights and responsibilities of both the insurer and the insured, specifying what is covered, any exclusions, and the procedure for filing claims. This document acts as proof of the insurance contract and provides essential information regarding the coverage that the insured holds.