5.3.3. How enterprises make use of insurance
A subsection of Commerce, 7100, through 5. Aids to trade that support commerce
Listing 10 of 201 questions
The retail trade consists of many small-scale shopkeepers, several types of large-scale retailers and an increasing number of online retailers. State two functions of any type of retailer. Give one example of a type of large-scale retailer. Explain two reasons for the success of large-scale retailers in many countries. All retailers require insurance. What is the purpose of insurance? An online retailer has recently taken out fire insurance to cover a warehouse valued at $400 000. The premium is $28 a year for each $50 000 of cover. Calculate the premium. Show your working. Insurance is based on the pooling of risk. Does pooling of risk influence the level of insurance premium paid? Give reasons for your answer.
7100_w14_qp_22
THEORY
2014
Paper 2, Variant 2
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Salim, an employee of Sphi Ltd, was killed in an accident at work. Sphi Ltd’s insurance company paid compensation of $800 000 to Salim’s family. Salim also had life insurance cover totalling $180 000. Name the type of insurance Sphi Ltd would have in order to provide insurance cover for its workers. Calculate the total amount of money Salim’s family would receive. Show your working. State four stages in the process of making an insurance claim. Explain how the principle of indemnity applies when making an insurance claim. Salim’s wife is a customer of the Orion Bank. Explain two ways in which the Orion Bank may assist her. Salim worked on the production line in the factory at Sphi Ltd. Discuss the advantages and disadvantages to factory workers of working on a production line. Are the advantages greater than the disadvantages for the factory workers? Give reasons for your answer.
7100_w15_qp_21
THEORY
2015
Paper 2, Variant 1
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CCC Insurance provides insurance services. It insures 500 businesses against the risk of flooding. Fig. 3 shows the pooling of risk for flood insurance. 500 businesses premiums $2 million Compensation for 15 businesses Costs X Fig. 3 Use Fig. 3 to help you answer the following questions. Using Fig. 3, explain what is meant by pooling of risk. Calculate the average premium paid by each one of the 500 businesses. Show your working. Identify examples of two possible costs in Fig. 3. Identify X in Fig. 3. State four actions businesses would need to take when making a claim. Explain one way in which CCC Insurance is productive. CCC Insurance could use the following different means of payments to collect premiums: • cheques • direct debits • debit card • credit card. Which two means of payment would be most suitable for collecting premiums? Give reasons for your answer.
7100_w16_qp_22
THEORY
2016
Paper 2, Variant 2
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Questions Discovered
201