Finance and financial system

Questions on the text.

1. What is economic risk? '

2. How does insurance reduce financial loss?

3. What is the purpose of insurance?

4. What does the policy consist of?

5. How does the insurance company use premiums?

6. How do two types of insurance companies differ?

7. What agencies insure banks, credit unions, savings and loan associations on their accounts?

 

Ex. I. Explain the following.

1. to pay a small fee

2. to provide financial security

3. to issue a policy

4. to buy insurance protection

5. to cover damages and losses

6. to pay bills

7. to pay claims

Ex. II. Find proper definitions:

1.   2.   3.   4.   5.   6.   7.   8.   9.   10.

agent   claims   health insurance   insurance   insurer   liability insurance   life insurance   policy   accident or sickness   premium

a) a representative of an insurance company; b) the amount of money charged by the insurance company for protection during a certain period of time; c) Insurance that protects you against claims of others whose person or property you may have accidentally damaged; d) A protection usually for the family and relatives of a person after the death of that person; e) A protection that provides money to pay bills in case of accident or sickness; f) A formal written agreement between you and the insurance company; g) Requests to the insurance company for payments because of financial losses; h) A way of sharing economic risks and and the resulting losses; i)  A protection against damage or loss of your own property;