TAX 3701 QUESTIONS WITH CORRECT ANSWERS
Risk Management - ✔✔ using strategies to reduce the amount of risk
insurance - ✔✔ protection against possible financial loss
Types of business insurance - ✔✔ employer liability, product liability, public
liability, burglary and hold up
Third party motor insurance - ✔✔ Covers damage caused by a driver to other
people and property
Third party fire and theft insurance - ✔✔ Only covers damage to the other drivers
car in the event of an accident
Comprehensive motor insurance - ✔✔ covers everything for both parties in an
accident
Permanent health insurance - ✔✔ provides sick pay for workers unable to work
due to illness
, Key Person Insurance - ✔✔ protects a business against financial loss caused by the
death or disability of a vital member of the company, usually individuals
possessing special managerial or technical skills or expertise.
Key Person Insurance - ✔✔ protects against the loss of a key employee or key
executive by making the business the beneficiary if a key person dies. The business
is the owner, premium payor, and beneficiary.
Pay related social insurance (PRSI) - ✔✔ Paid by a person who has gross earnings
from employment and savings
Loadings - ✔✔ an amount added by the insurance company to your insurance
premium because there is a greater chance of a loss occurring.
No Claims Bonus - ✔✔ a reduction in the cost of your insurance because you
made no claims in the previous year
Cover note - ✔✔ A document given by an insurer as evidence of temporary cover
before a formal policy can be issued.
Insurance Policy - ✔✔ A contract that outlines coverage plans and protects a
person against financial loss or damage.
Risk Management - ✔✔ using strategies to reduce the amount of risk
insurance - ✔✔ protection against possible financial loss
Types of business insurance - ✔✔ employer liability, product liability, public
liability, burglary and hold up
Third party motor insurance - ✔✔ Covers damage caused by a driver to other
people and property
Third party fire and theft insurance - ✔✔ Only covers damage to the other drivers
car in the event of an accident
Comprehensive motor insurance - ✔✔ covers everything for both parties in an
accident
Permanent health insurance - ✔✔ provides sick pay for workers unable to work
due to illness
, Key Person Insurance - ✔✔ protects a business against financial loss caused by the
death or disability of a vital member of the company, usually individuals
possessing special managerial or technical skills or expertise.
Key Person Insurance - ✔✔ protects against the loss of a key employee or key
executive by making the business the beneficiary if a key person dies. The business
is the owner, premium payor, and beneficiary.
Pay related social insurance (PRSI) - ✔✔ Paid by a person who has gross earnings
from employment and savings
Loadings - ✔✔ an amount added by the insurance company to your insurance
premium because there is a greater chance of a loss occurring.
No Claims Bonus - ✔✔ a reduction in the cost of your insurance because you
made no claims in the previous year
Cover note - ✔✔ A document given by an insurer as evidence of temporary cover
before a formal policy can be issued.
Insurance Policy - ✔✔ A contract that outlines coverage plans and protects a
person against financial loss or damage.
