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ENGLISH FOR FINANCE НАВЧАЛЬНИЙ ПОСІБНИК

UNIT 5 . INSURANCE

TEXT 1. INSURANCE AND RISKS

Task 1. Study the vocabulary:

losses	7. збитки
adverse conditions	8. несприятливі умови
reimburse	9. відшкодовувати
indemnification	10. компенсація, відшкодування
nuclear power	11. атомна, ядерна енергія
provision	12. положення
consequences	13. наслідки
stock insurance company	14. акціонерна страхова компанія
mutual insurance company	15. компанія взаємного страхування
policy-holder	16. власник страхового полісу

Task 2. Read and translate the text:

INSURANCE AND RISKS

Insurance technology is a means chosen for funding of losses, incurred by individuals and companies as a result of various adverse conditions. The character of risks reimbursed through the mechanism of insurance, way of action of this mechanism depend upon the needs and wishes of a given society. The need in funds for indemnification for damages also differs. In one society a risk is taken by the state, in another - by private companies. However, the risks of large damages which cannot be covered by private structures must be always ensured by the government through taxation or by other means. Examples of risks covered by the government include risk related to the use of nuclear power or risk of unemployment. Systems of organization of insurance also differ across various countries.

Thus, this type of financial-economic activity is extremely important for provision of endless economic life of a society. In addition, it helps individuals to deal with consequences of adverse events. Insurance companies are a kind of regulators of society's attitude to risks.

There are two major types of insurance companies. A stock insurance company is owned by stockholders, just like any other investor-owned company. A mutual insurance company is owned by its policy-holders. These companies are more popular today as more firms join together to start new mutual companies. They do so because stock companies (which are investor-owned) cannot or will not sell policies at "reasonable" prices.

The factor that makes insurance an effective way to cover risk is the Law of large numbers. It states that if a large number of people or organizations are exposed to the same risk, a predictable number of losses will occur during a given period of time.

Task 3. Decide if the statements are true or false:

1. Insurance is the protection against possible financial losses.

a) true b) false

2. Only legal entities can make regular payments to an insurance company which accepts the risk of loss.

a) true b) false

3. When you buy insurance you make a contract, called a policy, with the insurance company.

a) true b) false

4. If you are a policy-holder, and you suffer losses, the insurer will then indemnify them: that is, pay you an amount of money equivalent to the loss.

a) true b) false

5. Systems of organization of insurance are similar across different countries.

a) true b) false

6. A mutual insurance company is a kind of investor-owned company.

a) true b) false

7. Stock insurance companies are more popular today than mutual companies as the latter offer policies at much higher prices.

a) true b) false

8. The system of insurance helps individuals to deal with consequences of adverse events.

a) true b) false

Task 4. Substitute the underlined words in italics with the words form the box.

affluent (багатий) catastrophes claims

commission gilts(держ. цінні папери) huge

indemnify insurance brokers policy

retires sums underwritten

Insurance is designed to provide a sum of money to compensate for any damage suffered as the result of a risk that has been insured against in a specific insurance (1) ………, such as fire, accident, theft, loss, damage, injury or death. Thousands of people pay premiums to insure companies, which use the money to (2) ……….. people who suffer loss or damage, etc. Some people also use insurance policies as a way of saving. Life insurance policies, for example, usually pay a certain sum on a specific date – for example, when a person (3)………, or earlier if the person dies.

Insurance companies, like pension funds, are large institutional investors that place great (4)………. of money in various securities: bonds, shares,(5)…….., etc.

Insurance companies generally employ their own agents who sell insurance to customers, but there are also (6) ………. who work with several companies, selling insurance in return for a (7)………..

If a particular insurance company considers that the risk it has (8) ……..is too big, it might share the business with other companies, by way of reinsurance. Lloyds of London underwrites a great many risks which are spread among lots of syndicates, made up of groups of (9) ……… people known as “names”. In return for earning a percentage of the insurance premiums, the names have unlimited liability for losses. After a series of (10) ……… following lots of (11) …………. in the late 1980s, many Lloyds syndicates had to make (12) ……… pay-outs, and many names were bankrupted.

Task 5. Match the term with its definition:

agent	a) money that a company will have to pay to someone else
broker	b) the money paid by the insured to the insurer in return for insurance cover or benefits payable
compensation	c) a contract between a customer and an insurance company, which will pay for particular losses or damage in return for one or more payments
gilts	d) to compensate someone for loss or injury, etc.
indemnify	e) the possibility of loss
insurance	f) money paid by an insurer to someone who has suffered injury or had property lost or damaged
insurance policy	g) the provision of financial protection for property, life, health, etc. against specific risks
liabilities	h) person who negotiates purchases and sales in return for commission or a fee
premium	i) i) an agent in a particular market, such as securities, commodities, insurance, etc.
risk	j) long-term bond issued by the British government

Task 6. Complete the sentences with the words of the active vocabulary. The first letters of the words are given in bold.

1. I have a theft policy, so the insurance company will i_______ me if my mobile phone is stolen.

2. If you make a big claim from your insurance company, the cost of you p______ will probably go up.

3. You should always read the small print – all the details – before you accept an insurance p_______.

4. Life insurance is also a way to s_________ money and pay less tax.

5. When I insured my house, I used a b______ to find me the best deal.

TEXT 2. KEY TERMS USED BY INSURANCE COMPANIES

Task 1. Study the vocabulary:

deductible clause	пункт про франкшизу
coinsurance clause	положення про спільне страхування
insurance coverage	страхове забезпечення
property insurance	страхування майна
hail	град
marine insurance	морське страхування (кораблів та грузів)
aviation insurance	авіаційне страхування
liability insurance	страхування цивільної відповідальності
liability policy	поліс страхування відповідальності

Task 2. Read and translate the text:

KEY TERMS USED BY INSURANCE COMPANIES

An insurance policy is a written contract between the insured and an insurance company that promises to pay all or part of a loss. A premium is the fee charged by the insurance company. The rule of indemnity says an insured person cannot collect more than the actual loss. A deductible clause says that the insurance company will pay only the part of a loss that exceeds the deductible amount. A coinsurance clause requires businesses to carry insurance equal to 80 % of a building's value.

Business carries a variety of insurance coverage including fire auto and truck, liability, health, life criminal loss, and worker's compensation.

Property insurance includes fire insurance and its rider, which covers wind, hail, smoke and other damage. It also includes an insurance (including bodily injury, property damage, collision a comprehensive coverage), marine and aviation insurance.

Liability insurance provides protection against losses resulting from personal injuries or damage to the property of others. A variety of liability policies are available, including an umbrella liability policy that covers virtually everything. Workers' compensation is a form of liability insurance for on-the-job injuries.

Task 3. Match the sentence halves.

1. A premium is	a form liability insurance for on-the-job injuries
2. The rule of indemnity says	an insured person cannot collect more than the actual loss..
3. A deductible clause says	protection against losses resulting from personal injuries or damage to the property of others.
4. A coinsurance clause requires	businesses to carry insurance equal to 80 % of a building's value
5. Liability insurance provides	the fee charged by the insurance company.
6. Workers' compensation is	that the insurance company will pay only the part of a loss that exceeds the deductible amount.

Task 4. Match the synonyms.

1. indemnify	stipulation
2. variety	preserve
3. injury	responsibility
4. compensation	range
5. clause	bargain
6. liability	harm
7. contract	negative profit
8. loss	indemnification

Task 5. Match English word combinations with their Ukrainian equivalents and memorize them.

1) net loss	короткострокові збитки
2) loss replacement	повідомлення про збитки
3) to inflict losses	завдавати збитків
4) to sell at a loss	потенційні збитки
5) windfall loss	непередбачувані збитки
6) to carry a loss	зареєструвати збитки
7) notice of loss	відшкодування збитків
8) potential loss	продавати у збиток
9) severe loss	значний збитки
10) short-term loss	чистий збиток

Task 6. Complete the sentences with the missing words from the active vocabulary. The first letters of the missing words are given in bold.

1. VTB's net l_____ has reduced in July, overall negative trends continue.

2. Otherwise the hotel shall be released from its l ______ for the non-safety of things.

3. The burial benefit received by private persons who incurred these expenses shall not be counted towards the c _______ for the injury.

4. An i_____ to a company caused by a State did not necessarily give claim rights to shareholders.

5. Businesses are providing a wide v______ of information and services, whether it's real-time stock quotes, sports scores, or city guides.

6. It encourages access to insurance c______ by owners and charterers of fishing vessels sufficient to protect the crew and their interests, indemnify third parties and protect their own interests.

7. The lease costs include costs related to positioning and depositioning and for liability i______ .

TEXT 3.WORKERS’ COMPENSATION INSURANCE

Task 1. Study the vocabulary:

common law	загальне право
employer	роботодавець
employee	робітник
sue	пред'являти позов, подавати скаргу; виступати як позивач
suit	позов; судова справа; судовий процес
negligent	недбалий; неакуратний
litigation	судовий процес, судова справа, позов
submit claims	ставити вимоги
“opt in”	брати участь

Task 2. Read and translate the text:

WORKERS’ COMPENSATION INSURANCE

If your business has employees, you will need workers’ compensation insurance.

Workers’ compensation is a system set up by the state to insure all employees in the state in case of a work place injury. Under common law, the master (employer) is responsible for the injuries that occur to their servant (employee). Before workers’ compensation an employee could sue an employer for their injuries on the job. The employer could defend against the suit by showing the employee was negligent or not doing their job at the time of the injury. Understandably, this system led to a good deal of litigation – none of it benefiting workers, their families, or their employers.

Over time, states set up a system of insurance where all employers were required to participate and in return employees were no longer entitled to bring a law suit for their injuries. Instead, employees submit claims to the insurer and the claims are paid.

By law, you will be required to participate in workers’ compensation. There are exceptions, but the exceptions are few. The exceptions also differ by the state you do business in. As a general rule, if you are self-employed, you do not need to have workers’ compensation insurance. However, you can “opt in” as a self-employed business person.

When you start in your business your premiums will be based on the claims experience of your particular industry. Claims experience is a historical set of data kept over time which statistically predicts the number of injuries (claims) that are likely to occur in an industry. The roofing business and construction contractors typically have the highest claims experience and workers’ compensation premiums are higher for those businesses. Businesses where there is less chance of injury have lower premiums.

After a few years your business will be rated on its claims experience. Typically this rating process will penalize your business with higher premiums for higher than average claims and reward your business with lower premiums for lower than average claims.

Most states also have voluntary employer training/safety programs that can lower premiums. Some states allow businesses to become self-insured by retaining private insurance outside of the workers’ compensation scheme.

If you have employees, you will need this insurance by law. In a properly constructed business insurance plan, the premiums for workers’ compensation insurance should be considered first and a budget for premiums for other types of insurance considered only after this legally mandated insurance is considered.

Task 3. Read the statements. Are they true or false?

1. Workers’ compensation is set up by private business.

a) True; b) False

2. The employer is liable for the injuries that occur to their employee at the workplace.

a) True; b) False

3. Before workers’ compensation an employee could file a lawsuit against an employer for their injuries on the job.

a) True; b) False

4. As a rule, the employers are required to participate in workers’ compensation.

a) True; b) False

5. Is you are self-employed, you do need to have workers’ compensation insurance.

a) True; b) False

6. The roofing business and construction contractors typically have the lowest claims experience.

a) True; b)False

7. Business where there is less chance of injury have higher premiums.

a) True; b)False

8. Businesses are never allowed to become self-insured.

a) True; b)False

Task 4. Complete the sentences using the information from the text:

1) If your business has employees, you will need workers’ compensation ________.

2) Workers’ compensation is a system set up by the state to insure all employees in the state in case of a work place ________.

3) When you start in your business your ________ will be based on the claims experience of your particular industry.

4) After a few years your business will be rated on its ________ experience.

5) In a properly constructed business insurance plan, the premiums for workers’ ________ insurance should be considered first.

Task 5. Match the English term with its Ukrainian equivalent

1) work place injury	який обслуговує власне підприємство
2) negligent employee	приватне страхування
3) bring a law suit	подавати позов до суду
4) exceptions	страховий внесок
5) self-employed	травмування на робочому місці
6) premium	винятки
7) private insurance	недбалий працівник
8) premium paid	сплачений страховий внесок

Task 4. Make up sentences from the words:

1. differentiation / insured / on/ insurance premium rate / risk level / professional and social / for persons / depends.

2. corporations/ made/ was/ by / about 97 %/ of life insurance contracts.

3. branches of / from / foreign insurance companies / Lithuania only / allows/ WTO/ member countries.

4. the option’s price / when the stock price falls, / and / its risk/ falls / increases.

5. between / the answer is / a businessman's risk / and/ to draw a line / a loss.

TEXT 4. INSURANCE AGAINST RISKS

Task 1. Study the vocabulary:

premium	страховий внесок
policy	страховий поліс
suffer loss	зазнавати збитків
possessions	майно
flood	потоп
earthquake	землетрус
hurricane	ураган
claim	позов про відшкодування збитків

Task 2. Read and translate the text:

INSURANCE AGAINST RISKS

Insurance is protection against possible financial losses. Individuals, companies and organizations can make regular payments, called premiums, to an insurance company which accepts the risk (or possibility) of loss. When you buy insurance you make a contract, called a policy, with the insurance company - also known as the insurer. The contract promises that the company will pay you if you suffer loss or damage to property, or sickness or personal injury.

There are various losses which people or business can insure against:

· theft – someone stealing their goods or possessions;

· damage from fire or other natural disasters such as floods, earthquakes and hurricanes.

If property is stolen or damaged, the person or company who is insured makes a claim – requests compensation - from the insurer. The insurer will then indemnify or compensate them: that is pay them an amount of money equivalent to the loss. As the number of natural disasters seems to be increasing, so are the claims for damage to property, and this will lead to higher insurance premiums.

In the past, many people buying insurance used independent brokers – people who searched for insurance at the lowest cost, or agents – people working for insurance company. But like retail banking, the insurance industry has changed in recent years. A lot of insurance is now sold direct, by telephone or on the internet. This can be cheaper than insurance brought over the counter from a broker or an agent.

Task 3. Fill in the gaps with the missing words.

1. Insurance is the ________ against possible financial losses. When you buy insurance you make a contract, called a _______.

2. There are various ______ which people or business can insure against.

4. If property is stolen or damaged, the person or company who is insured makes a ______.

5. In the past, many people buying insurance used independent _______.

6. The insurance _______ has changed in recent years.

7. A lot of insurance is now sold ________, by telephone or on the internet.

Task 4. Substitute the underlined words in italics with the words form the box.

affluent (багатий) catastrophes claims

commission gilts(держ. цінні папери) huge

indemnify insurance brokers policy

retires sums underwritten

Insurance is designed to provide a sum of money to compensate for any damage suffered as the result of a risk that has been insured against in a specific insurance (1) contract, such as fire, accident, theft, loss, damage, injury or death. Thousands of people pay premiums to insure companies, which use the money to (2) compensate people who suffer loss or damage, etc. Some people also use insurance policies as a way of saving. Life insurance policies, for example, usually pay a certain sum on a specific date – for example, when a person (3) stops working at the age of 60 or 65 or whenever, or earlier if the person dies.

Insurance companies, like pension funds, are large institutional investors that place great (4) amounts of money in various securities: bonds, shares,(5) British government bonds, etc.

Insurance companies generally employ their own agents who sell insurance to customers, but there are also (6) other middlemen who work with several companies, selling insurance in return for a (7) percentage of the premium.

If a particular insurance company considers that the risk it has (8) assumed responsibility for is too big, it might share the business with other companies, by way of reinsurance. Lloyds of London underwrites a great many risks which are spread among lots of syndicates, made up of groups of (9) wealthy people known as “names”. In return for earning a percentage of the insurance premiums, the names have unlimited liability for losses. After a series of (10) demands for payment following lots of (11) natural disasters in the late 1980s, many Lloyds syndicates had to make (12) enormous pay-outs, and many names were bankrupted.

Task 5. Match the term with its definition:

1. agent	a) a contract between a customer and an insurance company, which will pay for particular losses or damage in return for one or more payments
2. broker	b) an agent in a particular market, such as securities, commodities, insurance, etc.
3. compensation	c) long-term bond issued by the British government
4. gilts	d) money paid by an insurer to someone who has suffered injury or had property lost or damaged
5. indemnify	f) the possibility of loss
6. insurance	g) the provision of financial protection for property, life, health, etc. against specific risks
7. insurance policy	h) person who negotiates purchases and sales in return for commission or a fee
8. liabilities	i) money that a company will have to pay to someone else
9. premium	i) j) the money paid by the insured to the insurer in return for insurance cover or benefits payable
risk	k) to compensate someone for loss or injury, etc

Task 6. Complete the sentences with the words of the active vocabulary. The first letters of the words are given in bold.

1) I have a theft policy, so the insurance company will i_______ me if my mobile phone is stolen.

2)If you make a big claim from your insurance company, the cost of you p______ will probably go up.

3)You should always read the small print – all the details – before you accept an insurance p_______.

4)Life insurance is also a way to s_________ money and pay less tax.

5)When I insured my house, I used a b______ to find me the best deal.

6)L_____ insurance will pay an agreed sum to someone else, for example your husband or wife, if you die before a certain age.

TEXT 5. LLOYD’S OF LONDON

Task 1. Study the vocabulary:

1. underwriter	1. страхувальник (особ. морський)
2. syndicate	2. синдикат (форма об’єднання компаній для здійснення спільної діяльності)
3. unlimited liability	3. необмежена відповідальність
4. livestock	4. домашня худоба, живий інвентар
5. confidence	5. впевненість

Task 2. Read and translate the text:

LLOYD’S OF LONDON

Lloyd's, the biggest insurance business in the UK and in the world, is not a company, but an association of London underwriters. It was incorporated in 1871 and it is so called from Edward Lloyd.

Edward Lloyd was the owner of a coffee house where underwriters at that time met to do business.

Lloyd's is regulated by several Acts of Parliament and by its own rules. It is administered by the Council of Lloyd's.

Today more than 20 000 members of Lloyd's in 80 countries work for Lloyd's. Underwriting members or underwriters are grouped into 280 syndicates, generally specialising in particular types of risks. The syndicates vary in size from the relatively small units to the units of several thousand individuals.

Insurance is usually undertaken through Lloyd's brokers rather than directly with Lloyd's underwriting members.

Lloyd's brokers know better what syndicate to approach and how to negotiate the business. They act, like other brokers, and negotiate on behalf of their customers. They do not bear any risks, since only underwriting members bear all the risks with unlimited liability. One of the main principles of insurance with Lloyd's is the spreading of risk as widely as possible among syndicates to minimise their losses. Lloyd's is best known as a centre of marine insurance, but at the same time all kinds of insurance are practiced there. In fact, at the present day marine insurance comprises less than half the total business undertaken. Almost anything can be insured there as well: aircraft, communication satellites, civil engineering projects, livestock and so on.

Besides they do some business in travels, publishing⁰ and land. It exists because it has evolved over the centuries to meet the needs of the day.

Lloyd's motto Fidentia means confidence in the future.

Task 3. Fill in the gaps:

1. Lloyd's is the biggest insurance business in _______.

a) the UK;

b) the UK and in the world;

c) Europe.

2. It was incorporated in _____ and it is so called from Edward Lloyd.

a) 1877;

b) 1817;

c) 1871.

3. Edward Lloyd was the owner of a ______ where underwriters at that time met to do business.

a) restaurant;

b) coffee house;

c) fashion house.

4. Lloyd’s is administered by _______.

a) the Council of Lloyd’s;

b) the Board of Governors;

c) the president of Lloyd’s.

5. Lloyd’s brokers do not bear any risks, since only underwriting members bear all the risks with _______.

a) no liability;

b) limited liability;

c) unlimited liability.

6. Lloyd's is best known as a centre of _______.

a) life insurance;

b) marine insurance;

c) aircraft insurance.

7. At the present day marine insurance comprises _____ the total business undertaken.

a) less than half;

b) more than half;

c) half.

8. Lloyd's motto Fidentia means ______ in the future.

a) certainty;

b) doubt;

c) hesitation.

Task 4. Match the term with its definition:

1. unlimited liability	a. another name for life insurance
2. underwrite	b. an insurance company that undertakes to meet losses
3. underwriter	c. to take on the risk of paying for losses in accordance with the conditions of an insurance contract
4. transaction	d. large international insurance market in London
5. limited liability	e. responsibility for debts up to the value of the company’s share capital
6. Lloyd’s	f. a single business deal
7. insurance agent	g. a single, large amount of money paid out when an insurance policy matures
8. insurance broker	h. a middleman agent who negotiates insurance contracts for customers, using different companies
9. assurance	i. the legal obligation to pay all one’s debts, if necessary by the sale of one’s possessions
10. lump sum	j. person who sells insurance policies, for a single insurance company, in return for a commission

Task 5. Complete the sentences with the missing words.

Lloyd’s, property, reinsurance, underwrites, syndicates, agent, steals, direct, lump sum, names.

1. Some people buy life insurance that pays a _______ on retirement.

2. Many insurance companies now sell ________ over the phone or the internet.

3. Exporter shave to insure goods in transit in case somebody _______them.

4. I lost my job as an ________ for an insurance company when people stopped buying over the counter.

5. Lloyd’s spreads the risks it insures among _________ made up of groups of underwriters.

6. The individual underwriters at Lloyd’s are commonly called ________.

7. Lloyd’s _________ risks worth over $14 billion.

8. There are ________ companies that take on part of the risks underwritten by smaller companies.

9. Most people insure their personal _________ against loss, fire and theft.

10. _______of London if the world’s largest insurance market.

Task 6. Match English word combinations with their Ukrainian equivalents and memorize them.

1) insurance claim	страхове зобов’язання
2) insurance indemnity	обсяг страхової відповідальності
3) insurance contribution	страхова оцінка
4) insurance cover	страхове відшкодування
5) insurance fee	закон про страхування
6) insurance liability	заява про виплату страхового відшкодування
7) insurance valuation	страховий внесок
8) insurance law	страховий збір

TEXT 6.THE DEVELOPMENT OF UKRAINIAN INSURANCE MARKET

Task 1. Study the vocabulary:

1. natural calamities	1. природні катаклізми
2. additional expenditures	2. додаткові витрати
3. gain profit	3. отримувати прибуток
4. securities	4. цінні папери
5. non-fulfillment	5. невиконання
6. uneven	6. неврівноважений
7. decay	7. ослаблення, занепад; зменшення, скорочення
8. insolvency	8. неплатоспроможність, неспроможність, банкрутство
9. recall	відміна, скасування, анулювання
capture	захоплення
reinsurance	перестрахування
retrocession	ретроцесія, передача частини ризику іншому страхувальнику
qualificatory requirements	кваліфікаційні вимоги

Task 2. Read and translate the text:

THE DEVELOPMENT OF UKRAINIAN INSURANCE MARKET

Higher independence of good manufacturers, formation of market infrastructure, contractual relations, keen restriction of the impact of state control on the progress of manufacture and allocation of material advantages - all these factors determine the need in the development of new approaches to the use of financial-credit mechanism in administration of the economy. The development of market relations, where every good manufacturer acts at his risk, increases importance of insurance. The issues of insurance of economic activity become especially important. Along with traditional tasks (provision of protection against natural calamities, accidents of technical and technological character, insurance more and more frequently covers financial risks, losses as a result of additional expenditures, not gained profit. New kinds of insurance appear e.g., UkrStrakhNaglyad (state supervisory body) issues licenses to property insurance of holders of privatization securities and other kinds of securities, insurance of liabilities of investment funds and other legal persons due to investors for the non-fulfillment of concluded agreements, on insurance of liabilities of investment managers.

The rise and development of the insurance market in Ukraine is uneven. Along with the rise and stabilization of some insurance companies one can observe decay, insolvency, or recall of license of others. The problems faced by insurance companies are caused by objective and subjective factors. The objective factors include: inflation (albeit controllable), economic recession; harsh competition that sometimes takes ugly forms; a comparatively high level of unemployment that provokes activation of criminal elements: utilization obsolete economically "dirty" technologies that comprise an appreciable percent of risk; imperfect legal acts, etc. The subjective factors include "capture" by insurance companies of a portion of the market that do not comply with the level of their real solvency; insufficient skillfulness of personnel; a comparatively narrow range of risks that are insures (similar insurance brief-bag); an absence of the practice of reinsurance.

The creation of the efficient insurance protection of business in the context of objectively available economic and social realities is complicated; therefore, companies have to adjust themselves to such realities, sometime distorting the nature and principles of insurance, discrediting thereby this sort of financial. The measures for sanitation of the insurance market should be based on the activity aimed at modernization and actualization of the existing legal acts. The principal executive link in the settlement of activity of insurance companies is the state supervision service, which, by way of establishing of an assured level of provision of insurance companies' solvency and putting into practice for the licensing of particular activity, must create a kind of filter qualificatory requirements that would prevent entering the insurance market by "ephemeral" and "shadow" companies. The present phase of transition to market -oriented economy requires strict observance of disciplinary procedures, that, unfortunately, are insufficiently developed as of yet and operate poorly. In order to protect consumers and increase of the level of insurance companies' competence, it is necessary to create general occupational standards both for the levels insurance (insurance - reinsurance - retrocession) and for the hierarchy of official functions (agent - broker -underwriter).

Task 3. Decide if the statements are true or false:

1. At present the issues of insurance of economic activity are not of great importance.

a) true b) false

2. The development of the insurance market in Ukraine is even.

a) true b) false

3. Insurance companies face problems of objective character only.

a) true b) false

4. Inefficient skillfulness of personnel is considered to be the objective factor influencing insurance companies.

a) true b) false

5. The creation of the efficient insurance protection of business is a complicated process.

a) true b) false

6. Qualificatory requirements in insurance business would prevent entering the insurance market by “ephemeral” and “shadow” companies.

a) true b) false

7. The measures for sanitation of the insurance market should be based on the activity aimed at modernization and actualization of the existing legal acts.

a) true b) false

8. Occupation standards both for the levels of insurance and for the hierarchy of official functions can help to protect consumers and increase the level of insurance companies’ competence.

a) true b) false

Task 4. Complete the table.

VERB	NOUN
*Example:* to insure	insurance
To restrict
To allocate
To develop
To provide
To supervise
To invest
To stabilize
To compete
To practise
to require

Task 5. Match the term with its definition:

1. economic activity	a. the state of not being in debt
2. inflation	b. the rise in the general prices of goods and services in a particular country over a period of time, resulting in a fall in the value of money
3. recession	c. a difficult period in the economy of a country or group of countries, when there is less trade and industrial activity than usual and more people are unemployed
4. insolvency	d. a local office or shop of a business
5. solvency	e. actions that involve the production, distribution and consumption of goods and services at all levels within a society.
6. competition	f. a situation in which people or organizations compete with each other for sth that not everyone can have
7. branch	g. the state of not having enough money to pay what you owe
8. budget	h. a regulation or limitation
9. impact	i. a financial operating plan showing expected income and expenditure
10. restriction	j. strong effect or impression

Task 6. Match the synonyms.

1. competition	producer
2. profit	user
3. insolvency	decline
4. recession	bankruptcy
5. investment	capital formation
6. manufacturer	rivalry
7. consumer	benefit
8. requirement	request

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