Apr 19, 2016

Finance English practice: Unit 47 — Insurance

19 cards
, 77 answers
  • Complete the sentences below. Use the key words if necessary.
    • Insuring against risks

      key words
      Insurance      ○      financial losses      ○      premiums      ○      insurer      ○      loss of      ○      damage to      ○      personal injury      ○      theft      ○      natural disasters      ○      makes a claim      ○      indemnify      ○      brokers      ○      agents      ○      direct      ○      over the counter

      is protection against possible . Individuals, companies and organizations can make regular payments, called , to an insurance company which accepts the risk (or possibility) of loss. When you buy insurance you make a contract, called a policy, with the insurance company — also known as the . The contract promises that the company will pay you if you suffer or property, or sickness or .

      There are various losses which people or businesses can insure against:
      — someone stealing their goods or possessions
      • damage from fire or other such as floods, earthquakes and hurricanes.

      If property is stolen or damaged, the person or company who is insured — requests compensation — from the insurer. The insurer will then or compensate them: that is, pay them an amount of money equivalent to the loss. As the number of natural disasters seems to be increasing, so are the claims for damage to property and this will lead to higher insurance premiums.

      In the past, many people buying insurance used independent — people who searched for insurance at the lowers cost, or — people working for the insurance company. But like retail banking, the insurance industry has changed in recent years. A lot of insurance is now sold , by telephone or on the internet. This can be cheaper than insurance bought from a broker or an agent.

      Life insurance and saving

      key words
      Life insurance      ○      tax shelters      ○      lump sum

      (also called assurance) will pay an agreed sum to someone else, for example your husband or wife, if you die before a certain age. People also use life insurance policies as a way to save for the future: you can buy a policy that pays a certain sum on a specific date, such as when you retire from work. As with pension plans, life insurance policies are , or a way of postponing payment of tax. You go not have to pay income tax on life insurance premiums. However a — a single, large amount of money paid out when an insurance policy matures — will be taxable.

      Insurance companies

      key words
      huge      ○      underwriters      ○      syndicates      ○      unlimited liability      ○      reinsurance      ○      bear

      Insurance companies have to invest the money they receive from premiums. Like pension funds, they are large institutional investors that invest sums in securities, especially low-risk ones like government bonds.

      The largest insurance market in the world is Lloyd’s of London. This is an association of people called , who guarantee to indemnify other people’s possible losses. Lloyd’s spreads risks among a number of : groups of wealthy individuals, commonly known as ‘names’. These people can earn a lot of money from insurance premiums if the clients never claim for compensation, but they also have or responsibility for losses.

      If insurance companies consider that they have underwritten too many risks, they can sell some of that risk to a company. This is a company that will receive some of the premium and also , or take, some of the risk.

    • Complete the sentences.
      • 1. Some people buy life insurance that pays a  . . . 
        lump sum
        on retirement.
        • benefits
        • lump sum
        • dividends

      • 2. Many insurance companies now sell  . . . 
        , over the phone or the internet.
        • immediately
        • directly
        • direct

      • 3. I have a theft policy, so the insurance company will  . . . 
        me if my mobile phone is stolen.
        • indemnify
        • make a claim
        • protect

      • 4. If you make a big claim from your insurance company, the cost of your  . . . 
        will probably go up.
        • bonus
        • premium
        • reward

      • 5. When I insured my house, I used a  . . . 
        to find me the best deal.
        • agent
        • broker
        • coach

      • 6. Exporters have to  . . . 
        goods in transit in case somebody steals them.
        • hedge
        • protect
        • insure

      • 7. I lost my job as an  . . . 
        for an insurance company when people stopped buying over the counter.
        • executor
        • broker
        • agent

      • 8. Lloyd’s spreads the risks it insures among  . . . 
        made up of groups of underwriters.
        • agents
        • brokers
        • syndicates

      • 9. The individual underwriters at Lloyd’s are commonly called  . . . 
        • syndicates
        • names
        • families

      • 10. Natural disasters are expensive for insurance companies because they cause a lot of  . . . 
        to buildings and their contents.
        • damage
        • injury
        • loss

      • 11. Lloyd’s  . . . 
        risks worth over £14 billion.
        • insurances
        • underwrites
        • groups

      • 12. You should always read the small print — all the derails — before you accept an insurance  . . . 
        • policy
        • rule
        • standards

      • 13. There are  . . . 
        companies that on part of the risks underwritten by smaller companies.
        • emergency
        • retention
        • reinsurance

      • 14. Life insurance can be a tax  . . . 
        — a way of putting off paying tax till later.
        • shelter
        • protector
        • cover

      • 15. Most people insure their personal  . . . 
        against loss, fire and theft.
        • home
        • property
        • wallet

      • 16.  . . . 
        of London is the world’s largest insurance market.
        • Procter&Gamble
        • Lloyd’s

      • 17. Fortunately, I’ve never had a car accident, so I’ve never had to  . . . 
        anything from the insurance company.
        • pretension
        • claim
        • reclamation

      • 18. Life insurance is also a way to  . . . 
        money and pay less tax.
        • protect
        • save
        • preserve

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