Key Terms, Definitions and Summary

• A financial Service provider is an organisation that offers money-related services.
• The main financial service providers in Ireland are commercial banks, credit unions and An Post.
• A commercial bank is a financial institution that serves individuals and businesses.
• A current account is a non-interest account that allows the account holder to withdraw money at any time.
• A debit card allows an account holder to withdraw cash from an ATM or to transfer money electronically from their account.
• A cheque is a written instruction to the bank to pay an amount of money to... (More)

Principles of Insurance

All insurance is based on the following five basic rules or principles:

• Insurable Interest
• Utmost Good Faith
• Indemnity
• Subrogation
• Contribution

Insurable Interest

To insure something you must benefit from its existance and should suffer financialy from its loss.

Utmost Good Faith

You must answer all questions truthfully and reveal all relevant information when completing the proposal form or claim form.

Indemnity

The insured person should not profit from insurance. Insurance exists to put the insured person back in the same financial position they were in before the loss, not a better one.

Subrogation

Once an insurance company... (More)