Fig. 5.1 shows a poster advertising a theme park's rides. [Figure 5.1] Use Fig. 5.1 to help you answer the following questions.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [1] Rational/love of a bargain/discount/special offer/saving money/safety
2. [1] Yes - It is persuasive customers will like receiving a discount
3. [1] can lead to impulse buying
4. [1] appealing phrases such as ‘Just for you'/'Ride and save'
5. [1] use of bold font for effect
6. [1] has a deadline increasing urgency to take up offer
7. [1] having insurance protection giving trust to go on rides as they have a 5-star rating will attract customers/increase sales
8. [1] No - It is confusing there are too many numbers lots of 10s is it 10 % or up to 10%?
9. [1] no movement or images or sound
10. [1] not in colour
11. [1] not eye-catching
12. [1] short lifespan
13. [1] no contact information
14. [1] no brand name
15. [1] no location given so consumer does not know here to go
16. [1] not eye-catching
17. The theme park is the insurer providing insurance protection. [FALSE (✔)]
18. Public liability insurance covers claims from customers due to an accident on a ride. [TRUE (✔)]
19. Theme park discount codes can reduce insurance premiums. [FALSE (✔)]
20. [1] Indemnity is when the insured is placed in the same position after a loss as before the loss with no profit made.
21. [1] Insurable interest means that the insured needs to have a direct financial interest to receive the claim.
22. [1] Utmost good faith means that both the insurer and the insured must be honest when giving information.
23. [1] Contribution occurs when a person is in a position to claim for a loss for the same risk from more than one insurance company.
24. [1] Subrogation is when no one can be compensated and then retain the rights to the property that has been compensated for.
25. [1] With indemnity, the insured can only claim back the amount of loss from the fire; they cannot claim back more than the damaged assets are worth; otherwise, a business owner could over-insure to gain more than $400 000.
26. [1] If the insured under-insures they cannot claim back the $400 000, as shown by the average clause formula, where the building owner will have to contribute to any loss.
27. [1] With insurable interest, a person cannot claim the $400 000 if they do not own the building so they cannot take out a policy on the building or gain compensation from it.
28. [1] With utmost good faith, the business would not receive any money if they lied about what the building contained, e.g. saying that it did not contain flammable materials when it did.
29. [1] With contribution, the insurance companies share the amount of the financial loss and pay out a share of the claim in proportion to the premium paid. So, if the building owner insured with two insurance companies, each company would pay out $200 000
30. [1] With subrogation, the insurance company will be allowed to pay the theme park's losses while seeking payment or reimbursement from the third party that may have caused the fire.
31. Evaluation: All insurance principles are important when making a claim. With indemnity, it is important to have the cost of the damage restored so that the business can start again. However, if the building is not owned by the person making the claim or they lied about the building on the proposal form, the policy will be void and they will not receive any compensation. Therefore, utmost good faith is probably the most important principle on the grounds that you lose everything if the truth has not been told, but if the insured owns the building and is completely honest then indemnity is more important to them.