Understanding Insurance – An Exercise to Solve

Insurance plays a vital role in protecting individuals, businesses, and assets from financial loss due to unforeseen events. It provides a safety net that helps mitigate risks and provides peace of mind.

Let’s explore an exercise designed to test and enhance your understanding of insurance-related concepts:

Exercise 1 – Put the words into the correct spaces.

1. How to ______________ an insurance policy.
2. Choose an insurance ______________, or contact an insurance company direct.
3. Phone up and get a ______________ (or you can do this on the internet).
4. Pay the ______________.
5. Now you’re ______________.
6. If you need to make a ______________, contact the insurance company.
7. You will probably have to ______________ a claim form.
8. You may have to wait several weeks for the insurance company to ______________.

Correct Answers:

1. take out
2. broker
3. quote
4. premium
5. covered
6. claim
7. fill in
8. pay out

Exercise 2 – Choose the best words to go into each space.

1. A person who assesses insurance claims is called a __________.

a. loss adjuster
b. claim adjuster
c. insurance adjuster

2. Your home insurance will be expensive if you live in a _________ area.

a. big risk
b. risky
c. high risk

3. An insurance broker usually __________ several different insurance companies

a. deals with
b. contacts
c. works for

4. In many cases, the insurance company doesn’t take the financial __________.

a. problem
b. risk
c. damage

5. The financial risk is taken by _________ such as Lloyds of London.

a. underwriters
b. undertakers
c. underpasses

6. Natural disasters usually mean that insurance underwriters suffer __________.

a. heavy losses
b. high expenses
c. big debts

7. A __________ proves you have insurance while the policy is being processed.

a. cover letter
b. cover paper
c. cover note

8. If you agree to pay, for example, the first £200 of a claim, then your policy has a £200 __________.

a. surplus
b. extra
c. excess

9. A company giving insurance cover is known as the __________.

a. insurer
b. insured
c. insurance

10. A person who has taken out insurance cover is known as the __________…

a. insurer
b. insured
c. insurance

11. Or the __________.

a. policyholder
b. policy-taker
c. policy

12. A life insurance policy pays out __________ your death or after a set period, whichever is first.

a. in case of
b. if
c. in the event of

Correct Answers:

1. a
2. c
3. a
4. b
5. a
6. a
7. c
8. c
9. a
10. b
11. a
12. c

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