uninsurable

particular

fundamental

speculative

Driver training is an example of a post-loss minimisation technique.

Pooling is a prerequisite for insurance. 

 Insurance contracts indemnify the insured in terms of money, goods or both. 

Organisational charts are useful in identifying process-type risk.   

in full by the insured.

in full by the insurer.

on a rateable basis between the insured and insurer.

in full by the insurer,

less the deductible. 

The insurer should aim to settle claims for the lowest possible amount, regardless of the policy terms.

The insured should be restored to the same financial position they were in immediately before the loss occurred, that is, not a better or worse position.

The insurer should pay the full amount claimed by the insured without question or investigation.

The insured should profit from a claim by receiving more than the actual value of their loss.

R14 000 000.   

 R18 000 000.

R  4 000 000.

R  3 200 000.

provide partial cover against losses which have already been incurred but not reported (IBNR). 

contributes to smoothing the captive’s underwriting results.

assumes the cedent’s reserves for outstanding losses.

combines self-funding with insurance.

refers to the first or original cause of a loss where more than one cause/event contributes to the loss.

refers to the dominant cause of a loss.

refers to the final or last cause of a loss where more than one event contributes to the loss.

does not need to be an insured peril.

 provide no cover to vehicles damaged at the insured’s premises.

only covers the insured’s own vehicles against theft.

are normally rated on the wage figure of the business.

cover vehicles temporarily in the course of a journey.

only the amount of excess of the cedant’s normal capacity for a particular risk is ceded to the reinsurers.

the cedant has a choice not to cede business and keep it for its own account.

 risk is shared on a non-proportional basis between the cedant and reinsurer.

 the share of the different parties involved in the agreement is expressed as a percentage.

is arranged on a treaty basis only.

have grown in popularity because they are simple to operate.

is arranged on a treaty or facultative basis.

entails the cedant to underwrite its retention as a form of first-loss insurance.