Insurance is like marriage. You pay, pay, pay, and you never get anything back.

Al Bundy

The chief beneficiary of life insurance policies for young, single people is the life insurance agent. Wes Smith Wes Smith Fun is like life insurance; the older you get, the more it costs. Kin Hubbard (American Humorist and Writer, ) Kin Hubbard

How Insurance Works What is insurance? Why do people and businesses purchase insurance cover? What does a person or a business have to do if they want to purchase insurance? Do you know how the insurance business works? RB, p 65 II Read the text and find the answers. III Find the words which match... IV Match the verbs with the appropriate nouns... V Read the gapped text and suggest

Check: V Read the gapped thext... 1) premium2) cover3) risk 4) spreading5) claims 6) reinsurance7) purchase 8) reduce

WHAT DO THEY DO? UNDERWRITER BROKER INSURER POLICY HOLDER / INSURED LOSS ADJUSTER

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The party to an insurance arrangement who undertakes to indemnify for losses.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The party to an insurance arrangement who undertakes to indemnify for losses.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER A person or organization that has an insurance policy. S/he receives the specific types of coverage (life, health, etc.) stated in the policy, subject to the payment of premiums, usually on a monthly basis.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER A person or organization that has an insurance policy. S/he receives the specific types of coverage (life, health, etc.) stated in the policy, subject to the payment of premiums, usually on a monthly basis.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person charged with evaluating an insurance claim to determine the insurance company's liability under the terms of an owner's policy.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person charged with evaluating an insurance claim to determine the insurance company's liability under the terms of an owner's policy.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person who evaluates the risk and exposures of potential clients. S/he decides how much coverage the client should receive, how much they should pay for it, or whether even to accept the risk and insure them.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person who evaluates the risk and exposures of potential clients. S/he decides how much coverage the client should receive, how much they should pay for it, or whether even to accept the risk and insure them.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person who works with many insurance companies to find the very best available policies for his or her clients.

WHO IS IT? UNDERWRITER, BROKER, INSURER, POLICY HOLDER/ INSURED, LOSS ADJUSTER The person who works with many insurance companies to find the very best available policies for his or her clients.

VII Put the following steps in the chronological order: HOW TO TAKE OUT INSURANCE VIII Fill in the missing words.

Avoiding the financial consequences of fire, theft, earthquake... Put in the right order: PAIRWORK: M contact an insurance agent or broker G file/submit a claim if you suffer a loss Dconsider the risks you face A decide to insure against an accident/ theft or damage (or: seek insurance cover) S receive compensation / indemnity A contract an insurance policy and pay a premium for the insurance cover E the insurance company settles a claim Write the letters in the right order...

Dconsider the risks you face A decide to insure against an accident/ theft or damage (or: seek insurance cover) M contact an insurance agent or broker A contract an insurance policy and pay a premium for the insurance cover G file/submit a claim if you suffer a loss E the insurance company settles a claim S receive compensation / indemnity DAMAGES or compensation or indemnity Avoiding the financial consequences of fire, theft, earthquake... Put in the right order:

Dconsider the risks you face A decide to insure against an accident/ theft or damage (or: seek insurance cover) M contact an insurance agent or broker A contract an insurance policy and pay a premium for the insurance cover G file/submit a claim if you suffer a loss E the insurance company settles a claim S receive compensation / indemnity DAMAGES or compensation or indemnity CAREFUL!!! Harm or injury to property or a person. = damage Money paid as compensation for injury or loss. = damages Avoiding the financial consequences of fire, theft, earthquake... Put in the right order:

Damage or damages? The houses sustained heavy ________ during the war. He was ordered to pay ________ by the end of the week. They intend to sue for ________. The disease is known to cause permanent brain ______. Please leave before you do any more ________. Ann was awarded £ 6,000 (in) _________. damage damages damage damages damage damages

Pairwork: Practice describing how insurance works from the perspective of the insured. Dconsider the risks you face A decide to insure against an accident/ theft or damage (or: seek insurance cover) M contact an insurance agent or broker A contract an insurance policy and pay a premium for the insurance cover G file/submit a claim if you suffer a loss E the insurance company settles a claim S receive compensation / indemnity DAMAGES or compensation or indemnity

Where does your premium go?

pool of premiums claims overheads investments industry government individuals profits

Describe the diagram! Please, copy the text and fill the gaps. As can be seen from the graph, thousands of people pay _________ to insurance companies, which use the money to pay ______ and __________. The rest of the _____of premiums can be ________ in the form of lending to _______, ___________, or _________ in order to earn _____. In this way insurance companies become large institutional investors that place great sums of money in various securities. premiums claims overheads invested industrygovernmentindividuals profit pool

PAIRWORK: Practice describing the diagram. pool of premiums claims overheads investments industry government individuals profits

HW: RB, p 67 (Task VII, VIII) RB, p 68 Read: Lloyd’s tsunami exposure limited Prepare to explain the heading and following expressions (from the text) in simple terms: - unscathed- property claims - limited/minimal exposure- reinsurers -penetration of insurance - insured losses -insurance spent per head - exclusions for “acts of God” - the worst on record in terms of... -softening of premium rates How do disasters affect a) insurers and b) the insured?

HW: fill in the missing prepositions (To be found in Task XI, p 68) face risk / face a risk ____ fire insure ______ risk / burglary / theft / injury to be covered _______ loss two parties ____ an insurance contract receive money ____ premiums pay money ____ compensation penetration ___ insurance worst year ___ record big number ___ insurance terms compared ____ $ 2000 ___ head exclusions ____ “acts ___ God” an analyst ___ Numis Securities / PBZ / CNB