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

• 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

• Fun is like life insurance; the older you get,

the more it costs.Kin Hubbard (American Humorist and Writer,1868-1930)

How Insurance WorksWhat 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 65II 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 ...

http://www.youtube.com/watch?v=ID9aevs-els

Check:

V Read the gapped thext...

1) premium 2) cover 3) risk4) spreading 5) claims6) reinsurance 7) purchase8) 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

D consider 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...

D consider the risks you faceA decide to insure against an accident/ theft or

damage (or: seek insurance cover)M contact an insurance agent or brokerA contract an insurance policy and pay a premium for

the insurance coverG file/submit a claim if you suffer a lossE the insurance company settles a claimS receive compensation / indemnityDAMAGES or compensation or indemnity

Avoiding the financial consequences of fire, theft, earthquake... Put in the right order:

D consider the risks you faceA decide to insure against an accident/ theft or

damage (or: seek insurance cover)M contact an insurance agent or brokerA contract an insurance policy and pay a premium for

the insurance coverG file/submit a claim if you suffer a lossE the insurance company settles a claimS receive compensation / indemnityDAMAGES or compensation or indemnityCAREFUL!!! Harm or injury to property or a person. = damageMoney 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.

D consider the risks you faceA decide to insure against an accident/ theft or

damage (or: seek insurance cover)M contact an insurance agent or brokerA contract an insurance policy and pay a premium for

the insurance coverG file/submit a claim if you suffer a lossE the insurance company settles a claimS receive compensation / indemnityDAMAGES or compensation or indemnity

Where does your premium go?

Where does your premium go?

pool ofpremiums

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.

premiumsclaims

overheadsinvested

industry government individualsprofit

pool

PAIRWORK:Practice describing the diagram.

pool ofpremiums

claims

overheads

investments industry

government

individuals

profits

HW: • RB, p 67 (Task VII, VIII)• RB, p 68 Read: Lloyd’s tsunami exposure limitedPrepare 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 ratesHow 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