Car insurance, life insurance, health insurance and more about your family insurance.

Not Insured Risks

admin — Tue, 13 Dec 2011 00:04:10 +0000

It is good to know that not all risk can be hedged. As mentioned above, the risk must be plausible and realistic,
but not defined in time and space (otherwise the insurance company will be doomed to go bankrupt
(Can not afford to compensate all losses), or have to ask the size of insurance premiums, which are not
attractive to the consumer).

However, the risks are quite often occur (large enough to
uniform number of cases), the insurance company would be able to accurately calculate the insured event
and the likelihood of the insurer to offer a lower price (the less precise statistics, the
greater risk for potential insurance benefit insurance company has, the more money
amount of potential payment of the insurance company forced to book a room at the higher insurance
deposit insurer is obliged to offer).

Risks associated with the frequency distribution of insurance risk – the more common risks, the more insurers; the greater the reserve may be accumulated to suggest a lower insurance premium. In addition, insurance companies can insure only those risks that can be objectively the cash (financial risk). If the loss rate depends on the insured person’s inner relation to the loss of property (e.g., a family relic, personal sympathy, emotion), the prohibition may be not be feasible or possible damage to the amount or method of calculating the objective criteria must be clearly specified in the insurance contract.

The insurance company can not insure the public interest, contrary to mandatory (overriding) the statutory requirements and public policy. Otherwise, it would does not ensure compliance with the mandatory rules of law, because the potential offender should ban
backing and follow them, or even deliberately them. Linked to this is one of the most important
insurance contract elements – security interest in the presence of a very simple explanation
would be to insure that only what is yours. Thus, the insurance can not afford to take advantage
for foreign disasters, such as. can not be insured for the benefit of their neighbor’s house on fire, can not be
its insured for the benefit of another person’s life (with certain exceptions), etc. This limitation is
to avoid possible abuses, attacks on property or life.

Uncertainty in Insurance

admin — Mon, 12 Dec 2011 23:57:22 +0000

It should be remembered and the next required that the insurance element - the uncertainty. It means
not just in an accident, but a situation where a disaster happens. In this case, the insurance fund
payment of the contribution (premium) is not returning. Thus, the insurance premium tax is a kind of
for the guarantee to the insured in case of emergency will be given the financial compensation (insurance
allowance). Similar to the custody case - if the asset custody not stolen it
property owner will not require the custodian to return custody fee. Only insurance premiums
case is somewhat complicated, because the main portion of the fee paid to the said fund, from which
will then be paid to the insurance benefits to all participants of the Fund. Thus, the insurance premiums
company formed by a reserve (technical provisions) for possible insurance premiums to be paid, in addition to
compensated by the award and execution costs (commission on insurance intermediaries
staff salaries, office maintenance, etc.) and the share of profit (commercial operator).

Incidentally, it should be noted that the development of insurance, especially life insurance, the insurance service
become more complex, multiple, and often modern life insurance contract covers not only
insurance from a certain element of risk, but some funding or investment services.
Part of the insurance premiums are paid to cover the risk insured and reserve shape, while the other part
accumulated or invested (depending on the nature of the contract), because at the end of the insurance
contract, even if no event has occurred, the policyholder receives the accumulated amount of money earned.

What Is Insurance

admin — Mon, 12 Dec 2011 23:53:03 +0000

Each person or organization is able to deal with misfortune or bad luck - an accident
the car is damaged or injured person in the workplace resulting injury, fire
house burns down, the cargo is not delivered on time, the debtor refuses to repay the debt (the debtor is lost)
and etc. However, most disasters is unpredictable, its occurrence is only likely in the foreseeable
indeterminate. Thus, there is a disaster accident risk. One type of risk we can tolerate, but
other will be happy to avoid. With an unacceptable risk can be addressed by eliminating a source of risk (that
the car is not stolen, you can acquire it), to improve the ways and means (the car
would not be stolen, you can use the-art security measures of complex motor
ignition systems, etc. etc.) in preparation for a reserve for potential losses sustained (knowing
that there is a chance that the car is stolen, the value of the car to deposit money into an account
that is to purchase a new car if the previous is stolen). But not in all cases
The following methods of contraception, we may be acceptable and comfortable. One of the risks (and more specifically, its effects
- Loss) ways of managing the risk of loss transfer on the other shoulder - insurance.

Insurance operating principle is based on risk diversification. Group of people (members) have brought a certain
monetary contributions to a fund from which the later event of a disaster for any of the offset
the losses incurred. Since this fund involves many people and, as mentioned above, the occurrence of disaster
is only expected (and thus payment of compensation and the corresponding decrease in the fund also
is the only plausible), participants in the fund, secured to get compensation in case of emergency, it may bring
one person in a relatively small contribution, however, generally have relatively high cash
reserve funds. Insurance Fund for each participant’s risk of damage split between all fund
participants, a significant reduction of any participant in the potential loss in case of failure. Obvious
insurance, the negative effects of the risk management tool, the advantage - for a relatively small
contribution receives a much higher compensation. So a person in order to ensure a calmer future
possible in case of failure, just much smaller amount than the one he decided to
raise the possibility of failure and its consequences.