Insurance Companies

Read the text and open the brackets.

Most of us (to pay) money (to avoid) some of the financial consequences of taking risks so insurance companies can (to sell) us a guarantee against risk for a fee that (to be) large enough (to cover) their claims and operating costs and still (to permit) a profit. No one can (to predict) whose house (to burn down) next, yours or your neighbour’s. Thus, all insurance policy buyers (to make) small contributions toward a fund that can (to be used) (to compensate) the person whose house (to go up) in flames. Insurance companies can (to provide) this service and (to expect) (to make) profits as long as the premium (to be) greater than the amount they might have (to pay), multiplied by the probability of payment. Vast amounts of money (to pay) to insurance companies as premiums for life, auto, and health insurance, or as contributions to pension funds, many of which (to administer) by insurance companies. These funds (to make) available for loans to business firms or (to invest) directly by the insurance companies.

COMPREHENSION

Ex. 1. Answer the questions.

• Who benefits from a policy?

• Who pays the compensation money to the insured whose house is in flames?

• Is insurance a really profitable business?

Ex. 2. In groups discuss the role of insurance companies in our life.

Dialogue

Read the conversation between an insurance agent and a parent who wants to buy a policy for his child. For your better understanding look at the tables in Translation B.

Agent: Please, sit down, Mr. Ivanov. How can I help you?

Parent: Um, I saw your advertisement on TV and I’d like to buy a policy for my son. But I don’t know exactly which one I want.

A: OK I’ll try to clarify all the points on the policies we sell. Are you interested in term or whole life insurance?

P: Term insurance. For about three years.

A: And why do you want to insure your son? Does he have any health problems?

P: Oh, no. His health is perfect! You see, he goes in for boxing and takes his sport very seriously. He wants to become a professional boxer. That’s why he trains a lot. He’s already won competitions in the Schools Amateur Association contests.

A: Congratulations!

P: But boxing is very dangerous I think. I’m afraid something might happen to him. And you understand I can’t prevent him from going in for this kind of sports. The only thing I can do for my son is to buy a policy.

A: Yes, you’re right. As far as I understand, you want to insure your son against traumas and accidents.

P: That’s true.

A: So, let’s go down to our business. How old is your son?

P: He’s 12.

A: Well, I can offer you two types of term insurance for this age. For one the insurance money is 225 996 rubles, for the other – 564 991 rubles.

P: And what are the premiums?

A: Not very high. For the first type it’s 20 000 rubles per year. For the second it’s 50 000 rubles per year.

P: 50 000 rubles per year? Not very much, really.

A: It’ll make 150 000 rubles for three years.

P: Umm…Well, I think I’d prefer the second type. And how much is the compensation in the case of a trauma?

A: They vary form 56 499 to 169 497 rubles depending on the seriousness of the case. Totally, within the term of the insurance, you can be paid 80% of the insurance money. The remaining 20% will be paid after your policy expires. Do you have any other questions?

P: No, I think everything is clear but I have to talk it over with my wife. Thank you for your help.

A: It’s my pleasure. I hope to you again soon.

Using the tables in Translation B, make up a similar situation and act it out with a partner.

TRANSLATION