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
An online insurance company accepts payment for premiums by direct debit and debit card. Explain what is meant by direct debit. State one reason why insurance companies accept debit card payments for premiums. Explain, using examples, two reasons why people of the same age may be quoted different premiums for life cover by the same insurance company. Assess the benefits and drawbacks of buying insurance from an online insurance company. Give reasons for your answer.
7100_w21_qp_22
THEORY
2021
Paper 2, Variant 2
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Jimmy Reed, an 18-year-old, needs motor insurance after passing his driving test and buying a sports car. He has been asked to complete the insurance document in before he can obtain insurance cover. Private Car Insurance Proposer Title (Mr, Mrs, Miss etc.) Surname First name Date of birth Telephone number: Email address: Postal address Address at which vehicle is kept (if different from postal address) Occupation Type of insurance required Cover to commence from: comprehensive third party Signature Date To: Use the information above and to help you answer the following questions. Identify the insurance document. Identify the proposer. Give one reason why Jimmy needs to sign the document. Do you think Jimmy would be refused insurance for his new car? Give reasons for your answer. Discuss the importance of utmost good faith when Jimmy applies for motor insurance. Give reasons for your answer.
7100_w22_qp_21
THEORY
2022
Paper 2, Variant 1
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Mrs Ali operates a convenience store. She provides informal credit to some customers and receives 30 days’ credit from some suppliers. A convenience store is a small-scale retailer. Give one other type of small-scale retailer. Do you think that Mrs Ali should offer informal credit to some customers? Give reasons for your answer. Explain one advantage and one disadvantage to Mrs Ali of receiving 30 days’ credit from some suppliers. Advantage Disadvantage Mrs Ali requires buildings insurance. Evaluate the role of an insurance broker in arranging buildings insurance for Mrs Ali. An insurance company charges Mrs Ali $21 per $10 000 insured for buildings insurance. Calculate the cost to Mrs Ali of insuring her store for $170 000. Show your working.
7100_w22_qp_22
THEORY
2022
Paper 2, Variant 2
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Questions Discovered
201