{"id":3107,"date":"2023-10-04T11:05:10","date_gmt":"2023-10-04T11:05:10","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3107"},"modified":"2023-10-04T11:07:45","modified_gmt":"2023-10-04T11:07:45","slug":"week-7-ss2-second-term-commerce-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-7-ss2-second-term-commerce-notes\/","title":{"rendered":"Week 7 – SS2 Second Term Commerce Notes"},"content":{"rendered":"

\u00a0WEEK SEVEN\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Date: ______
\n<\/strong>TOPIC: INSURANCE
\n<\/strong>CONTENT
\n<\/strong><\/p>\n

    \n
  1. INSURANCE AND ASSURANCE\n<\/li>\n
  2. INSURANCE RISKS AND NON- INSURANCE RISKS\n<\/li>\n
  3. INDEMNITY INSURANCE AND NON-INDEMNITY INSURANCE\n<\/li>\n<\/ol>\n

    NOTES
    \n<\/strong>Insurance is a contract whereby an insurer or underwriter agrees to compensate the insure in the event of his suffering a loss, in return for the payment of a premium by the insured.
    \nThe basic principle of insurance is the pooling of risks \u2013 A number of people who wish to cover themselves against a certain risk contribute to a pool or a common fund out of which compensation are made to those who actually suffer losses arising from that particular risk. The amount of premium depends on the probability of the risk. The greater the risk, the higher the premium and vice versa.<\/p>\n

    \u00a0Compensation for victims will depend on the premium paid and the extent of losses suffered.<\/p>\n

    \u00a0INSURANCE AND ASSURANCE
    \n<\/strong>Insurance refers to events which are uncertain and which may or may not happen e.g. fire, burglary etc. It is based on probabilities.<\/p>\n

    \u00a0Assurance refers to events which are certain and which are sure to happen e.g. death must happen. Example is life assurance. Assurance is based on possibilities.<\/p>\n

    \u00a0EVALUATION
    \n<\/strong>1.\u00a0\u00a0\u00a0\u00a0What is insurance?
    \n2.\u00a0\u00a0\u00a0\u00a0Distinguish between the terms insurance and assurance.
    \n\t\t\t<\/strong>
    \n\u00a0INSURABLE RISKS AND NON-INSURABLE RISKS
    \n<\/strong>Risks which are calculable (i.e. the likelihood of their occurrence is possible to be estimated) and for which premiums may therefore be assessed are called INSURABLE RISKS e.g. Motor Accident, Life, Marine, Theft, etc.<\/p>\n

    \u00a0In other words, insurable risks are those risks whose likelihood of occurrence can be forecast, from past experience and for which a rate of premium can be calculated to enable the insurance company to collect enough premium to pay those who will unfortunate enough to suffer loss from such risks. Insurable risks hold out the prospects of loss but not again.<\/p>\n

    \u00a0NON-INSURABLE RISKS
    \n<\/strong>Also called un-insurable risks are risks that cannot be insured because their likelihood of
    \noccurrence cannot be calculated due to insufficient information being available to insurer to enable him estimate the premium. It holds the prospects of gain as well as loss.<\/p>\n

    \u00a0EXAMPLES OF NON-INSURABLE RISKS ARE:
    \n<\/strong><\/p>\n

      \n
    1. Loss of profit through competition.\n<\/li>\n
    2. Loss due to gambling.\n<\/li>\n
    3. Loss due to changes in taste and fashion.\n<\/li>\n
    4. Loss due to mal administration (i.e. loss incurred as a result of bad management).\n<\/li>\n
    5. Risk due to war.\n<\/li>\n
    6. Loss of profits through fall in demand.\n<\/li>\n
    7. Speculation.\n<\/li>\n<\/ol>\n

      \u00a0INDEMNITY INSURANCE AND NON-INDEMNITY INSURANCE
      \n<\/strong>Indemnity insurance is the type of insurance in which the insured can be restored to his former position before the incident occurred by receiving compensation. Examples are insurance against fire, marine, burglary etc.<\/p>\n

      \u00a0In non-indemnity insurance, the insured cannot be restored to his former position before the incident occurred. This insurance is not purposely for equating the loss with the compensation. Examples are life assurance and personal accident insurance.<\/p>\n

      \u00a0EVALUATION
      \n<\/strong><\/p>\n

        \n
      1. What is meant by the term insurable risk\n<\/li>\n
      2. Distinguished between indemnity and non-indemnity insurance.\n<\/li>\n<\/ol>\n

        \u00a0GENERAL EVALUATION QUESTIONS
        \n<\/strong><\/p>\n

          \n
        1. Explain five circumstances when an insured may not be indemnified\n<\/li>\n
        2. Explain the following terms (a) insurable risks (b) non insurable risks\n<\/li>\n
        3. Give five main differences between a retail co \u2013 operative society and a public limited company\n<\/li>\n
        4. Explain five functions of the Central Bank of Nigeria\n<\/li>\n
        5. Explain five reasons why many small businesses turn into private limited companies\n<\/li>\n<\/ol>\n

          \u00a0READING ASSIGNMENT
          \n<\/strong>Essential Commerce for SSS by O.A. Longe Page 185 \u2013 201 <\/p>\n

          \u00a0WEEKEND ASSIGNMENT
          \n<\/strong><\/p>\n

            \n
          1. \n
            Which of the following risk would an insurance company not be prepared to cover\n<\/div>\n

            (a) death resulting from HIV (b) change in fashion (c) theft of property (d) loss of cash in transit\n<\/li>\n

          2. The aid to trade responsible for compensating traders on loss suffered in the day-to-day business operation is (a) warehousing (b) insurance\u00a0\u00a0\u00a0\u00a0(c) transportation (d) advertising\n<\/li>\n
          3. \n
            Which of the following is a non-insurable risk (a) cash-in-transit\u00a0\u00a0\u00a0\u00a0(b) fire\u00a0\u00a0\u00a0\u00a0\n<\/div>\n

            (c) consequential loss (d) speculative venture\n<\/li>\n

          4. \n
            The sum which the insured pay periodically to his insurance company is called\n<\/div>\n

            (a) brokerage (b) commission (c) indemnity (d) premium\n<\/li>\n

          5. \n
            The incidence of loss that would have paralysed commercial activities are heaped on\n<\/div>\n

            (a) banking (b) communication (c) advertising\u00a0\u00a0\u00a0\u00a0(d) insurance\n<\/li>\n<\/ol>\n

            \u00a0THEORY
            \n<\/strong><\/p>\n

              \n
            1. List four examples of non-insurable risks\n<\/li>\n
            2. Distinguish between insurance and assurance.\n<\/li>\n<\/ol>\n


              \n\t\t\t<\/strong>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

              \u00a0WEEK SEVEN\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Date: ______ TOPIC: INSURANCE CONTENT INSURANCE AND ASSURANCE INSURANCE RISKS AND NON- INSURANCE RISKS…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,250],"tags":[],"class_list":["post-3107","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss2-commerce"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3107"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3107\/revisions"}],"predecessor-version":[{"id":3108,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3107\/revisions\/3108"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}