1. INSURANCE

2. INSURANCE – BASIC VOCABULARY
HOW MANY WORDS DO YOU KNOW?
●INSURER ●INSURED ●COMPENSATION
●COVER ●REIMBURSE ●AGENT ●DAMAGES
●INSURANCE POLICY ●UNDERWRITE ●DAMAGE
● REINSURANCE ●BROKER ●PREMIUM ●CLAIM

3. READING – HOW INSURANCE WORKS – RB, p. 65
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?
What happens if you suffer a loss?

4. READING – HOW INSURANCE WORKS – RB, p. 65 & 66
II Read the text and find the answers to those
questions.
III VOCABULARY - Find the words in the text which match the corresponding explanations.
IV Match the verbs with the appropriate nouns to make collocations.

5. LISTENING - HOW TO TAKE OUT INSURANCE – RB, p. 66
Read the gapped text and think about what kind of words and expressions might be missing. Then, fill in the gaps as you watch the video:
Do the TASK VII, p. 67. Put the steps in taking out insurance in the chronological order.
What types of insurance are mentioned in the talk?

6. INSURANCE COMPANIES AS FINANCIAL INTERMEDIARIES BETWEEN SAVERS AND INVESTORS
CLAIMS
POOL OF
PREMIUMS
OVERHEADS
INVESTMENTS
INDUSTRY
GOVERNMENT
INDIVIDUALS
PROFITS

7. INSURANCE COMPANIES Do you remember the words from the graph?
Fill in the missing words:
As we can see from the graph, thousands of people
pay ___________ to insurance companies, which use
the money to pay ___________ to people who suffer loss or
damage. A part of the money goes for ___________, and fixed
and variable costs. The rest of the ___________ of premiums
can be ___________ in the form of lending money to
___________, ___________ or ___________ in order to earn
___________. In this way insurance companies become large
institutional ___________ that place vast sums of money in
various securities.

8. BASIC TYPES OF INSURANCE
THERE ARE FOUR BROAD CATEGORIES OF INSURANCE:
FIRE MOTOR MARINE LIFE ACCIDENT CREDIT
FIDELITY LIABILITY PROPERTY
______________ - primarily covers fire risk, but can also
include cover against flood, theft,
explosion and other risks to property.
______________ - insurance that pays out an amount when
someone dies, or when someone
reaches a particular age or dies before
they reach that age
______________- insurance against loss or damage to property,
against injury or sickness to people or against
liability through negligence

9. BASIC TYPES OF INSURANCE
THERE ARE FOUR BROAD CATEGORIES OF INSURANCE:
FIRE INSURANCE - primarily covers fire risk, but can also
include cover against flood, theft,
explosion and other risks to property.
LIFE INSURANCE - insurance that pays out an amount when
someone dies, or when someone
reaches a particular age or dies before
they reach that age
ACCIDENT- insurance against loss or damage to property,
against injury or sickness to people or against
liability through negligence

10. BASIC TYPES OF INSURANCE
______________ – another name for car insurance, insurance
against a car being stolen, or damage to it and
other cars in an accident; insuring a car, the driver
and passengers in case of accident
______________ – covers the risk of liability for the injury or
death of someone else caused by negligence
______________ – covers goods in transit or in store, as well as
buildings and contents
______________ – covers against losses resulting from bad debts;
insurance taken out by borrowers paying back
loans that covers illness, losing their job and other
events that may prevent them making the regular
payments.
______________ – protects against loss by fraud and stealing by
employees
______________ – applied to ships and their cargo

11. BASIC TYPES OF INSURANCE
Motor insurance – another name for car insurance, insurance
against a car being stolen, or damage to it and
other cars in an accident; insuring a car, the driver
and passengers in case of accident
Liability – covers the risk of liability for the injury or death of
someone else caused by negligence
Property – covers goods in transit or in store, as well as buildings
and contents
Credit – covers against losses resulting from bad debts; insurance
taken out by borrowers paying back loans that covers
illness, losing their job and other events that may prevent
them making the regular payments.
Fidelity – protects against loss by fraud and stealing by employees
MARINE INSURANCE - applied to ships and their cargo

12. Which types of insurance are illustrated by these pictures?

13. BASIC TYPES OF INSURANCE
WHAT KIND OF INSURANCE DO YOU THINK YOU SHOULD TAKE
TO PROTECT YOURSELF AGAINST:
Your lorry being destroyed by fire? _________________________
Your client, while visiting your premises, being injured by a glass door?__________________________
A break-in at your premises? _________________________
An employee disappearing with a large sum of the company’s money? _______________________
A company going out of business and owing you 50,000 kn? ___________________________

14. TYPES OF INSURANCE – MORE DETAIL – RB, p.67
Identify the different types of insurance cover in TASK IX, and complete the sentences.

15. READING - LLOYD’S TSUNAMI EXPOSURE LIMITED – RB, p. 68
Read the article and comment: How do disasters affect a) insurers and b) the insured?