INSURANCE

II. INTRODUCING YOUR INSURANCE COMPANY

1. TYPES OF INSURANCE

Property and Casualty
Life
Health and Disability
Old Age and Unemployment


2. INSURANCE VOCABULARY

Why do we need insurance? Well, in life, losses are sometimes unavoidable. People may become ill and lose income or savings to pay offmedical bills . They may die of illness or accidents leaving their family without financial support . People's homes or other propertymay suffer damage or theft. People may also cause accidental injury to others or damage to the property of others.

Insurance is a legal contract that protects people from financial costs resulting from loss of life, health, lawsuits or property damage. In this way, individuals and companies can help to cope with some of the risks they face in everyday life. Today, insurance is widely used in most industrialized countries. Car owners are generally required by law to buy insurance before driving on public roads. Lenders require anyone who borrows money to finance the purchase of a home or car, to insure that property. Business partners take out life insurance on each other to make sure the business will not fail if one of the partners dies.

Insurance makes up part of the financial services industry which also includes banks, securities and trading companies. However, as a result of industry deregulation, the roles, products, and services of these formerly distinct businesses have become blurred. In the United States by the late 1990s, there were more than 5,500 insurance companies offering a wide range of policies and services . Some large companies sell virtually every type of insurance available in the marketplace, while smaller companies may specialize in a specific geographic region or type of insurance. 

Insurers distinguish between two types of risk: speculative risk and pure risk. Pure risks do not necessarily result in losses, they never result in gains. No one, for instance, experiences a gain when they go a full year without an auto accident. In contrast, speculative risk offers both the potential for gain and the potential for loss, such as investing on the stock market. Although historically, insurance companies have covered only pure risks, some are now helping businesses finance large losses incurred on speculative risks, such as the international exchange of currency.


3. OBLIGATIONS AND POSSIBILITIES

Obligation / necessity

You need to study each claim
Your main focus has to be
You have to be tactful
You don't have to make
You have to have a strong stomach

Possibility

You could get the chance
That would be great
I think I might enjoy that
You could be transferred 

III. RECOMMENDING A HOME INSURANCE POLICY 

1. DAMAGE AND DISASTER

electrical surge
theft
falling objects
windstorm
nuclear accident
water damage
smoke damage
flood
earthquake 

2. FINDING KEY INFORMATION IN A TEXT

3. COMPARING, CONTRASTING AND RECOMMENDING

IV. ASSESSING RISKS 

1. TYPES OF BUSINESS INSURANCE

an incapacitating injury - disability
legal responsibility - liability
money in return for loss - compensation 
restoring to health - rehabilitation
things owned - property
dangers - perils 

Small business insurance
Small business property insurance - insures the business against damages caused to or by their building, structures, equipment, furniture, and so on. 
Liability insurance - insures the business against potential damages and legal fees as a result of being sued. 
Workers' Compensation Insurance - insures the business against potential accidents or injuries in the workplace  

Liability insurance will protect business assets in the event the company is sued.

2. RISKS

Ventilation
Loose bricks
Drain pipe
Lighting
Chemicals
Stacked boxes 
Air conditioning
Fire extinguisher 
Sprinklers 

Extarior

Loose bricks
Yard
Sidewalk
Blocked drainpipe

Interior

No air conditioning
Bad ventilation
Stacked boxes
Blocked sprinklers
Chemicals
Old fire extinguisher 


3. IDENTIFYING RISKS AND EXPLAINING CONSEQUENCES

Consequences

They are a potential fire hazard.
If they slip
If there were a fire in here
If one of them falls, it could
 
Advice

You should probably have it done
You should get rid of
You should definitely install 
You'd better get



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