Insurance

Tips for Choosing a Life Insurance and Health

noreply@blogger.com (Indra) — Tue, 2 Aug 2011 13:06:00 +0700

Life Insurance and Health Insurance This is particularly true for self-employed and informal workers who do not have health coverage from a company or government agency.
An entrepreneur like me when to ill or disabled because of an accident will have a lot of financial losses / financially because they have to bear the cost of treatment and can not work for a living. Another case when a person works in a company or become civil servants, they usually get health insurance that will bear the cost if the pain and still be paid a monthly salary. (But not all companies provide decent health insurance you know)

Before you decide what insurance products, from insurance companies which I highly recommend to compare different products, types of products from several insurance companies. Do not rush to buy an insurance product without understanding very clearly the rights and obligations, if we take an insurance product.

Some tips from me to choose an insurance product:

Determine what the benefits of protection we need
Find information insurance products fit our needs by collecting brochures from different companies or look for information on the website of insurance companies
Ask the agent in more detail about these products thoroughly to detail the calculation of the allocation of funds we pay for anything
Do not be overconfident with what the insurance agent, because they are not necessarily fully understand the products they offer.
Have made dicetakkan illustrations benefits insurance products, premiums to be paid and the allocation of the premium paid to anywhere
Learn the content of the illustrations in the house with leisurely and carefully, do not rush to conclusions, ask to know more if there is not yet clear
Compare products from various insurance companies, which provide the greatest benefit with the least expensive premiums, but the info or find out whether the company is bona fide or not
Do not just based on the best insurance award from a magazine, but you need to really know how to count the cost of insurance
Specify your choice of insurance product after all of you really understand
After determining and deciding to buy an insurance product we will accept the insurance policy that contains a binding agreement between the customer and insurance companies, learn about the contents of the polis, the customer usually within 14 days were given the opportunity to cancel the policy.

That was a few tips from me so you will not regret it one day if you buy an insurance product without understanding fully the rights, obligations and comparisons with other products.

One more suggestion I as a customer who never fooled with an insurance product "Do not buy Life Insurance and Health Unit Link associated with investment". Trust unit-linked products is very expensive cut, you better take a pure life and health insurance and invest the money into mutual funds separately.

In future articles I will try to give a detailed calculation of unit-linked insurance that actually deplete the customer's money, which makes insurance agents are now many are wealthy by selling unit-linked insurance.

CHOOSE VEHICLE INSURANCE TIPS

noreply@blogger.com (Indra) — Wed, 23 Feb 2011 09:27:00 +0700

Choosing a car insurance is not easy. Especially in the midst of fierce competition nowadays. Almost all insurance companies have a product car insurance. Stay prospective customers to choose which ones deserve to take. Therefore below we present some criteria so as not to incorrectly selected:

1.Prospective customers do not dwell on the cheap premium rates. Because, in today's competition, many insurance companies slam prices, offers cheap premium rates. Though not necessarily any guarantee of service.

2.See the insurance package offered. For example, extensive warranties to how much. Therefore, extensive warranties should be adjusted with the desire and ability to prospective customers.

3.See also the network of insurance companies concerned. For example, how many have a branch office or how many partners have a garage, so once someone claims not to wait long to fix the vehicle or vehicles reported missing.

4.Can be asked in advance convenience, facility or what added value can be obtained when buying the policy in the company. For example, if there is a tow truck, a replacement car or hotline services, mechanic services, ambulances and so forth. And, last but not least is easy to make changes and the facility in question.

5.Consider also bonafides insurance company. Do not get so there is a claim, the partners did not have a garage. Therefore, many insurance companies claim they are the best. Though its financial condition was very severe.

In addition to the above, there are several factors that should be considered in the process of selecting an insurance company included in choosing the product. Things to remember that in choosing a private insurance company, then that should be considered in general are three factors.

First, the financial strength (security). Second, the service (service). And third, cost or expense. Financial strength of insurance related to the company's financial ability to fulfill its promise if the situation requires. It is important to know, because not a few insurance companies are looking beyond it classy. For example storey buildings, vehicles that good directors. But when there claims of customers, the company can not pay.

In assessing the financial strength of these there are some benchmarks that need attention.

a. Assets and liabilities. This can be seen from the consolidated balance sheet is published in the newspaper. See also, whether planted in the current investments or long-term. In terms of liability (ability to pay off liabilities) will look at the balance sheet, how the debts on the reinsurer, how he fulfilled his obligation to pay claims, and so forth.

Indicators of net liabilities include equity (own capital) divided by net premiums `` (net premiums) of at least 50%. Capital is divided into `` gross premiums (gross premiums) of at least 20%. Limit the level of solvency, which looks from its own capital divided by net premiums of at least 10% and investment funds technical reserves divided by at least 100%.

b. Underwriting Policy. On the balance sheet and annual report will be seen that the insurance is still a profit, or profit growth. This means underwiting policy was good.

c. Underwriters him. Insurance has personnel qualified or not. It is known from the profile companies that includes the underwriters him.

Service (service) is the extent to which the mirror of human resources at the company's qualified or not. Moreover, insurance companies are selling a service, so excellent service is the key. For example, the extent to which the speed of service in both the policy issue especially in the payment of compensation or claim.

Also, about the service can actually be felt by the customer. Is this insurance company was absolutely the best services for its customers.

In this connection should also be questioned, whether the insurance company mereasuransikan on a first-class reinsurance security. This can be seen from its annual report. It is important to note, because if the company is not in the back-up by reinsurance, the company is likely to be speculative in receiving the premiums.

The problem is how much the cost of expenses incurred by insurance companies in operation. If it is greater than the cost of entry, then obviously the company is not efficient. If it's not efficient, so the edges will incur a loss. And, if you continually lose, definitely not healthy.

In this connection could also be price premiums. Compare the price of insurance premiums the same with other insurance. Where the quality is really good.
Today the government has set a benchmark of health insurance (not the only one) is through mekanime RBC (Risk Base Caital). If the number is large RBC, this means the company is valued in good condition. But we should not be fixated solely with RBC numbers. Therefore, large companies can also occur which are conducting a major expansion such as opening more branches, then his numbers will surely RBC small.

Conversely, there is a small insurance company but never to expand, the number of RBC was probably much greater.

Thus, RBC numbers can not be used as the only measure, whether the insurance company is healthy or not.

In this case who is also noteworthy is the performance of the company within two or three years. How big profits every year, how much gross premiums they receive each year, how much additional capital and assets every year.

And, equally important is how the company's management behavior over the years. Is there a management company for this broken promise? Has the management of these companies have defaulted and others

Criticism of insurance companies

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:56:00 +0700

Some people believe that modern insurance companies are money-making businesses which have little interest in the insurance field. They argue that the purpose of insurance is to spread risk so that the reluctance of insurance companies to take high-risk cases (for example houses in areas subject to floods, or young drivers) will against the principle of insurance.

Other criticisms include:

* The insurance policies contain too many exclusion clauses. For example, a home insurance policies do not cover damage to garden walls.

* Most insurance companies use call centers and staff trying to answer questions by reading a script. It is difficult to talk to anyone with a thorough knowledge

The insurance industry and rent-seeking

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:55:00 +0700

Some insurance products and practices have been described as rent seeking by critics. That is, some insurance products or practices are useful primarily because of legal benefits, such as cutting taxes, as opposed to protection against the risk of side effects. USA under the tax legislation, for example, most owners of variable annuities and variable life insurance can invest their premium payments in the stock market and defer or eliminate taxes on their investments until withdrawals are made. Sometimes, this tax deferral is the only reason why people use these products. Another example is the legal infrastructure that allows life insurance to be held in an irrevocable trust which is used to pay a tax while the products themselves are immune from the estate tax.

Insurance patents

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:53:00 +0700

New insurance products can now be protected against copying with a method patents in the USA.

A recent example of a new insurance product which is patented is telematic auto insurance. It was independently invented and patented by a large U.S. auto insurance company, Progressive Auto Insurance (U.S. patent 5797134) and an independent inventor Spanish, Salvador Perez Minguijon (patent EP 0700009).

The basic idea of telematics auto insurance is one that driver behaviour is controlled directly while he or she grows and the information is forwarded to the insurance company. The insurance company uses the information to assess the likelihood that a driver has an accident and adjusts accordingly premiums. A driver who drives long distances at high speeds, for example, could be charged a different rate of a driver who drives short distances at low speed. The precise effect on costs is not known, because it is not clear that high-speed long-distance driver incurs a greater risk for an assurance that the slowness around town-pilot. [Change]

A British auto insurance, Norwich Union, obtained a license both progressive and Perez patent. They have made investments in infrastructure and developed a commercial offering called "Pay As You Drive" or PAYD.

Theoretical recent economic research on the protection progressive social effects of technology telematics business process patents have wondered if the business process patents are Pareto effective for society. Preliminary results suggest that they are not, but more work is needed. [12] [13]

Many independent inventors are in favor of patenting new insurance products because it gives them protection against large companies when they bring their new insurance products on the market. The independent inventors account for 70 percent of new patent applications of the USA in this field.

Many insurance executives are opposed to the patenting of insurance products because it creates a new risk for them. The Hartford insurance company, for example, recently had to pay $ 80 million to an independent inventor, Bancorp services, in order to settle a patent infringement and theft of trade secrets in court for a type of companies belonging to products Life insurance has invented and patented by Bancorp.

There are currently about 150 new applications for patents on inventions insurance filed annually in the USA. The rate at which patents have issued has steadily increased from 15 in 2002 to 44 in 2006. [14]

Closed community self-insurance

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:53:00 +0700

Some communities prefer to create virtual insurance them by means other than contractual risk transfer, which assigns numerical values explicitly at risk. A number of religious groups, including Amish and some Muslim groups, depend on support from their community disaster. The risk posed by a particular person is taken collectively by the community who bear the cost of reconstruction of lost and support people whose needs are more suddenly after a loss of any kind. In support of communities where others can be trusted community leaders, this tacit form of insurance can work. In this way the community can even extreme differences in insurability between its members. Other justifications are also provided by invoking moral hazard explicit insurance contracts.

In the United Kingdom The Crown (which, for practical reasons, means the public service) does not ensure property such as government buildings. If a government building was damaged, the cost of repair would be covered by public funds because in the long term, this was cheaper than paying insurance premiums. Given that many British government buildings were sold to real estate companies, rental and return, this arrangement is now less frequent and May have completely disappeared.

The complexity of insurance contracts

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:50:00 +0700

Insurance policies can be complex and some policyholders May not include all the rights and guarantees included in a policy. Accordingly, people buy May policies adverse conditions. In response to these questions, many countries have adopted detailed regulations and rules governing all aspects of insurance business, including minimum standards for policies and how they will be advertised in May and sold.

Many institutional buyers insurance buy insurance through an insurance broker. The brokers represent the buyer (not the insurance company), General Counsel and the buyer on guarantees, limits. A broker generally holds contracts with many insurers, thereby allowing the broker to "shop" the market for the best price and coverage possible.

Insurance May also be purchased by an agent. Contrary to a broker who represents the police, an agent represents the insurance company from which the policyholder buys. An agent may represent more than one company.

Insurance insulates

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:48:00 +0700

By creating a "comprehensive security" for its policyholders, an insurance company inadvertently May that its insured May not be as risk they might otherwise be (since, by definition, the insured has transferred the risk for the insurer). This problem is known to the insurance industry as moral hazard. To reduce their own financial risks, insurance companies have contractual clauses that mitigate their obligation to provide coverage if the insured person engages in conduct that significantly boosts the risk of loss or liability.

For example, life insurance companies May require higher premiums or refuse outright coverage for people who work in hazardous occupations or engaging in hazardous sports. Liability insurance providers do not provide coverage for liability arising from intentional crimes committed by the insured. Even if a supplier were so irrational that the desire to provide such coverage, it goes against the public policy of most countries to allow such insurance to exist, and therefore it is generally illegal.

Global insurance industry

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:47:00 +0700

Global insurance premiums grew by 8.0% in 2006 (or 5% in real terms) to reach 3.7 trillion dollars due to improved profitability and a favourable economic environment characterized by economic growth solid, moderate inflation and strong equity markets. Profitability improved in both life and non-life insurance in 2006 compared to the previous year. Life insurance premiums grew by 10.2% in 2006 as demand annuity and pension products rose. Non-life insurance premiums grew by 5.0% due to growth in premium rates. During the last decade, global insurance premiums grew by more than half the annual growth ranged between 2% and 11%.

The advanced economies account the bulk of global insurance. With premium income of $ 1485bn, Europe was the most important region, followed by North America ($ 1258bn) and Asia ($ 801bn). The four countries accounted for almost two-thirds of premiums in 2006. The USA and Japan alone accounted for 43% of world production insurance, much higher than their 7% share of the global population. Emerging markets accounted for more than 85% of the world population but only generated about 10% of premiums. The volume of insurance business UK amounted to $ 418bn in 2006, representing 11.2% of total premiums.

Insurance companies

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:45:00 +0700

Insurance companies May be classified into two groups:

* Companies life insurance, selling life insurance, annuities and pensions.
* Non-life, General, or property / casualty insurance companies, who sell other types of insurance.

General insurance companies can be divided into under these categories.

* Standard Lines
* Surplus Lines

In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between two types of society is that life, annuities, pension and business is very long term in nature - for life insurance or a pension can cover risks on many decades. In contrast, non-life insurance typically covers a shorter period, as a year.

In the USA, standard line insurance companies are your "main stream" insurers. These are the companies that typically ensure your car, home or business. They serve as a model or "cookie-cutter" policies without changing a person to another. They generally lower than premiums surplus lines and they can sell directly to individuals. They are governed by state laws which may limit the amount they can charge for insurance policies.

Surplus line insurance companies (aka surplus and the surplus) insure risks generally not covered by the standard lines market. They are largely covered by the whole set of non-admitted insurers. Non-admitted insurers are not allowed in states where the risks are located. These companies have greater flexibility and can react more quickly than the standard insurance companies because they are not required to file rates and forms as well as "admitted" carriers. However, they continue to have regulatory requirements imposed on them. Laws of the State in general insurance online with the surplus of agents and brokers not be available through licensed insurers standard.

Insurance companies are generally classified as either mutual or joint stock companies. It is more a traditional distinction as genuine mutual societies are becoming rare. Mutual companies are owned by police, while the shareholders (May or May not own policies) own shares of insurance companies. Other possible forms for an insurance company include Conversely, in which policy holders in return "in sharing risks, and Lloyds organizations.

Insurance companies are rated by various agencies such as AM Best. The notes include the finance company, which measures its ability to pay claims. He also rates the financial instruments issued by the insurance company, such as bonds, notes and securitisation products.

The reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce risk and protect themselves from huge losses. The reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer May also be a direct risk insurance.

The captive insurance companies May be defined as limited purpose insurance companies established with the specific objective of financing risks from their parents or groups. This definition may sometimes be expanded to include some of the risks of the parent company of customers. In short, it is in a self-insurance vehicle. Captives May take the form of a "pure" entity (which is a subsidiary to 100 per cent self-insured parent company); a "mutual" in captivity (which insures risks collective members of a Industry) and an "association" captive (which ensures self-risk individual members of a professional, commercial or industrial association). Captives represent commercial, economic and tax advantages to their sponsors because of reductions in costs they help create and to ease risk management and insurance flexibility for cash flows they generate. Furthermore, they May cover the risks that is not available or offered in the traditional insurance market at reasonable prices.

The types of risk that can subscribe to captivity for their parents include damage to property, public and product liability, professional liability, employee benefits, employers liability, motor and medical aid spending. The captive of exposure to these risks May be limited by the use of reinsurance.

The captives are increasingly becoming an important element of risk management and risk financing strategy of their parent. This can be understood against the following:

* Increasingly heavy and bonuses in almost every line of coverage;
* Challenges to ensure certain types of risk fortuitous;
* Difference coverage standards in various parts of the world;
* Notices structures that reflect market trends rather than loss experience;
* Lack of credit for deductibles and / or loss of control efforts.

There are also companies known as' insurance consultants. As a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy between many companies. Similar to an insurance consultant, a "broker" also shopping around for the best insurance policy between many companies. However, with insurance brokers, the fee is usually paid in the form of commissions from the insurer that is selected rather than directly by the customer.

Neither insurance consultants or insurance brokers are insurance companies and no risks are transferred to these insurance operations. Third administrators are companies that perform underwriting and sometimes processing services claims for insurance companies. These companies often have special skills that insurance companies do not have.

Financial stability and strength of an insurance company must be a major consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses which may arise for many years in the future. For this reason, the viability of the insurer is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders without coverage (or cover only a government-backed insurance or other arrangement with less attractive for losses payments). A number of independent rating agencies, as the best's, Fitch, Standard & Poor's and Moody's Investors Service, provide information and rate the financial viability of insurance companies.

Other types of Insurance

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:41:00 +0700

* Defence Act basic workers' compensation or DBA insurance provides coverage insurance for civilian employees hired by the government to perform contracts outside the USA and Canada. DBA is required for all U.S. citizens, residents of the USA, U.S. Green Card holders, and all employees or subcontractors hired abroad government contracts. According to the country, foreign nationals must also be covered under DBA. This coverage usually includes costs related to medical care and lost wages, as well as disability and death.
* Expatriates insurance of individuals and organizations operating outside their home country with protection for automobiles, property, health, corporate responsibility and activities.
* The financial loss insurance protects individuals and businesses against various financial risks. For example, a company may cover the purchase to protect against the loss of sales if a fire in a factory unable to perform his activities for some time. Insurance may also cover the failure of a creditor to pay money it owes to the insured. This type of insurance is often referred to as "insurance". Fidelity bonds and bonds are included in this category, although these products provide an advantage to a third party (the "creditor") where the insured (usually called the "debtor") fails to perform its obligations under a contract with the creditor.
* Kidnap and ransom insurance
* Closed insurance fund is a little-known hybrid insurance policy jointly issued by governments and banks. It is used to protect public funds, forgery by unauthorized parties. In special cases, a government May authorize its use in protecting semi-private funds which are likely forgery. The terms of this type of insurance are usually very strict. Hence, it is used only in extreme cases where the safety of funds is necessary.
* Nuclear Accident insurance covers damage resulting from an incident involving radioactive materials and is usually held at the national level. (For the USA, see the price Anderson Nuclear Industries Indemnity Act.)
* Insurance Pet Pet ensure against accidents and diseases - some companies cover current / wellness care and burial, as well.
* Insurance pollution. A first part of the coverage of contamination of insured property or by outside sources or on the spot. Coverage for liability to third parties arising from contamination of air, water or land due to the sudden and accidental release of hazardous materials by the insured. The policy typically covers the cost of cleaning and May include coverage for discharges of underground storage tanks. Intentional acts are specifically excluded.
* Purchase of insurance is to provide protection on products purchased. Subscribe insurance may cover the purchase of individual protection, warranties, guarantees, care plans and even mobile phone insurance. This insurance is normally very limited in the scope of problems that are covered by the policy.
* Title insurance provides a guarantee that the title to real property is exercised by the buyer and / or mortgagee, free and clear of liens or charges. It is usually issued through a search of documents made public during a real estate transaction.
* Travel insurance is an insurance policy taken by those who travel abroad, which covers some losses such as medical expenses, loss of personal effects, travel delay, liabilities, etc.

Life insurance

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:37:00 +0700

Life insurance provides a financial benefit to a family of the deceased or other designated beneficiary, May and specifically to provide income to the family of the insured, burial, funeral and other expenses finale. Life insurance policies often allow the possibility of having the proceeds paid to the beneficiary in a lump sum cash payment or an annuity.

Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance and require the same type of actuarial expertise and investment management assurance that the life requires. Pensions and pensions that pay a benefit for life are sometimes regarded as an insurance against the possibility that a retiree would survive its financial resources. In this sense, they are the additional life insurance and, in a shooting, are the mirror image of life insurance.

Some life insurance contracts accumulate cash values, which May be taken by the insured if the policy was delivered or that May be borrowed against. Some policies, such as pensions and staffing policies, are financial instruments to accumulate wealth or liquidate if necessary.

For more information: Life insurance

In many countries, such as the USA and the UK tax legislation provides that the interest on that value is not taxable under certain circumstances. This led to the widespread use of life insurance as a tax efficient method of savings and protection in the event of premature death.

In the USA, tax on interest income on life insurance policies and annuities is usually delayed. However, in some cases, the benefit arising from a deferral of tax May be offset by a weak performance. It depends on the insurance company, the type of policy and other variables (mortality, back in the market, etc.). In addition, other tax savings on income vehicles (for example, IRAS, 401 (k), Roth IRAS) May be better alternatives for the accumulation of value. A combination of low-cost life insurance and a higher return tax-retirement account May achieve better return on investment.

People with disabilities

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:32:00 +0700

* Disability insurance policies provide financial support in the event that the police are unable to work because of disabling illness or accident. It provides monthly support to help pay these obligations as mortgages and credit cards.
* Permanent total disability insurance provides for the payment of insurance benefits when a person is permanently disabled and can no longer work in their profession, often seen as a complement to life insurance.
* The overhead disability insurance allows business owners to cover the overhead of their business while they are unable to work.
* Workers' Compensation Insurance replaces all or part of a worker lost wages and medical expenses incurred because of an accident at work.

Casualty Insurance

noreply@blogger.com (Indra) — Tue, 6 May 2008 10:30:00 +0700

Casualty Insurance ensure against accidents, not necessarily linked to a specific property.

* Insurance Crime is a form of insurance that covers the insured against losses arising from these criminal acts of third parties. For example, a company can obtain crime insurance to cover losses from theft or embezzlement.
* Insurance against political risks is a form of insurance risks that can be taken by companies operating in countries where there is a risk that revolution or other political conditions will result in a loss.

Financing of vehicle safety

noreply@blogger.com (Indra) — Sun, 6 Apr 2008 10:40:00 +0700

* Protected self-insurance is another mechanism for financing risks in an organization that retains mathematically the cost of risk within the organization and transfer the risks with catastrophic limits and aggregate to an insurer so that the total number maximum cost of the program is known. A properly designed and guaranteed protected self-insurance program stabilizes and reduced insurance costs and provides valuable information risk management.
In retrospect nominal * Insurance is a method to put in place a premium on large commercial accounts. The final premium is based on actual insured losses during the experience of time, sometimes subject to a minimum and maximum premium, with the final premium determined by a formula. Under this plan, this year, the premium is based partially (or fully) to the current year, losses, although the premium adjustments May take months or years beyond the year expiration date. The rating formula is guaranteed under the insurance contract. Formula: A Retrospective premium converted = loss + basic premium × tax ratio. There are many variations on this formula were developed and are in use.
* Fraternal insurance is provided on a cooperative basis by mutual aid societies or other social organizations. [9]
* Auto insurance is a deliberate choice to pay for losses insurable otherwise out of his own money. This can be done on a formal basis by creating a separate fund in which funds are deposited on a periodic basis, or simply cancel the purchase of insurance available and payment out of their pockets. Auto insurance is generally used to pay a high frequency, low severity of losses. These losses, if they are covered by insurance classic means having to pay a premium that includes charges of the company overheads, the cost of putting the policy on the books, acquisition costs, taxes on premiums, and contingencies. If this is true for all insured for small, frequent losses transaction costs May exceed the benefit of reducing the volatility that insurance other offer.
* No-fault is a type of insurance (automobile insurance in general) where policyholders are compensated by their own insurer, regardless of fault in the incident.
* The reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses. Financial Reinsurance is a form of reinsurance that is used for the first capital management rather than transfer risk insurance.
* Stop-loss insurance provides protection against disasters or losses unpredictable. It is purchased by organizations who do not want to assume 100% of the responsibility for losses arising from these plans. Under a stop-loss policy, the insurance company becomes liable for losses that exceed certain limits known franchises.
* Social insurance can be many things to many people in many countries. But a summary of its essence is that it is a collection of insurance coverage (including the components of life insurance, disability insurance, unemployment insurance, health insurance and other) and retirement savings, that mandates participation of all citizens. By forcing everyone in society to be a police pay and bonuses, it ensures that everyone can become an applicant when or if he / she needs. En route, it becomes inevitably linked to other concepts such as the justice system and the welfare state. It is a complex matter which gives rise to enormous debate, which can be studied further in the following articles (and others):
o The welfare provision
o Social Security
o social safety net
o National Insurance
o Social Security (USA)
o debate on Social Security (USA)

Property Insurance

noreply@blogger.com (Indra) — Thu, 6 Mar 2008 10:33:00 +0700

This tornado damage to a house Illinois would be regarded as an "act of God" for insurance purposes
This tornado damage to a house Illinois would be regarded as an "act of God" for insurance purposes

Property insurance provides protection against risks to property, such as fire, theft or damage climate. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, marine insurance domestic or boiler insurance.

* Car insurance, known in the UK as motor insurance, is probably the most common form of insurance and May cover both legal liability against the driver and loss or damage suffered by the assured of the vehicle itself. Throughout the USA auto insurance is required by law to drive a motor vehicle on public roads. In some countries, compensation for injuries to the victims of car accidents has been changed to a no-fault, which reduces or eliminates the possibility to sue for compensation, but provides for automatic eligibility for benefits. Companies credit cards ensure against damage on car rentals.
o Driving School offers insurance coverage for any driver authorized under any education courses, contrary to cover also other policies engine provides coverage for liability instructor where students and instructors are to conduct both also responsible in the event of a disaster.
* Assure aviation insurance against the hull, spare parts, frankly, wear hull and liability risks.
* Boiler insurance (also known as boiler and machinery insurance or equipment breakdown insurance) ensure against accidental physical damage to equipment or machinery.
* Manufacturer of insurance against risks ensures against the risk of physical loss or damage to property during construction. Builder's risk insurance is usually written on an "all risks" cover damages due to any cause (including negligence of the insured) not expressly excluded.
* Crop insurance "Farmers use crop insurance to reduce or manage the risks associated with different culture. These risks include crop loss or damage caused by weather, hail, drought, frost, insects or disease, for example. " [8]
* Earthquake insurance is a form of property insurance to pay the policyholder in case of an earthquake which causes damage to property. Most homeowners insurance policies do not cover damage caused by earthquakes. Most insurance policies earthquake have a franchise high. Rates depend on the venue and the probability of an earthquake, and construction of the house.
* A bond of loyalty is a form of insurance that covers policyholders for losses they incur as a result of fraudulent acts by individuals. It generally ensures a company for losses caused by dishonest acts of its employees.
* Flood insurance protects against loss of property due to flooding. Many insurers in the USA do not provide flood insurance in some parts of the country. In response, the federal government created the National Flood Insurance Program, which serves as the insurer of last resort.
* The insurance or insurance: See "Insurance".
* Marine insurance and marine cargo insurance cover loss or damage of ships at sea or on inland waterways, and the cargo on May. When the cargo owner and the carrier are corporations, marine cargo insurance typically compensates the owner of the cargo for losses incurred by fire, shipwreck, etc., but excludes losses can be recovered from the carrier or the insurance carrier. Many marine insurance underwriters will include "time factor" in these policies, which extends compensation to cover the shortfall and other expenses attributable to the delay caused by a covered loss.
* Deposit insurance is an insurance liability guarantee the three main performance.
* Terrorism insurance provides protection against any loss or damage caused by terrorist activities.
* Volcano insurance is insurance that covers damage volcano in Hawaii.
* Windstorm Insurance is an insurance policy covering damage caused by hurricanes and tropical cyclones.

Health Insurance

noreply@blogger.com (Indra) — Thu, 6 Mar 2008 10:24:00 +0700

Almost all developed countries have provided the government insurance for health
Almost all developed countries have provided the government insurance for health

Health insurance policies often cover the cost of private medical treatment if the National Health Service in United Kingdom (NHS) or other publicly-funded health programs do not pay for them. The result is often faster health care where better facilities are available. Dental insurance, medical insurance coverage for people to protect them against dental costs. In the USA, dental insurance is often part of an employer's benefits and health insurance. Most countries rely on public funding to ensure that all citizens have universal access to health care.

The insurer business model

noreply@blogger.com (Indra) — Thu, 6 Mar 2008 10:12:00 +0700

Result = earned premium + investment income - suffered losses - fees.

Insurers make money two ways: (1) the subscription, the process by which insurers select the risks to be insured and decide on the amount of premiums charged to accept these risks and (2) investing in the they collect premiums from policyholders.

The most difficult aspect of the insurance business is making policies. Using a wide assortment of data, insurers predict the likelihood that a complaint be filed against their policies and price products accordingly. To this end, insurers use actuarial science to quantify the risks they are willing to assume and the premium they charge for them. The data are analyzed to project quite precisely the rate of future claims based on a given risk. The actuarial science uses statistics and probability to analyze the risks associated with the range of risks covered, and these scientific principles are used to determine an insurer's total exposure. In the event of termination of a given policy, the amount of premiums collected and investment earnings less about the amount paid out in claims is the insurer of the benefits of this policy. Of course, the insurer's point of view, some policies are winners (ie, the insurer pays less in claims and expenses than it receives in premiums and investment income) and others are losers (ie, the insurer will pay more in claims and expenses than it receives in premiums and investment income).

The insurer underwriting performance is measured in its combined ratio. The loss ratio (incurred losses and loss adjustment expenses divided by net earned premiums) is added to the expense ratio (underwriting expenses divided by net written premium) to determine the company combined ratio. The combined ratio reflects the company's overall underwriting profitability. A combined ratio below 100 percent indicates underwriting profitability, while more than 100 indicates an underwriting loss.

Insurance companies also earn profits on investment "float". "Float" or reserve available is the amount of money at hand at any given time, an insurer which has collected insurance premiums, but has not been paid in claims. Insurers start investing insurance premiums as they are collected and continue to earn interest on the debt until paid.

In the USA, loss of property and accident insurance companies was $ 142.3 billion during the five years ending in 2003. But overall profit for the same period was $ 68.4 billion, following the float. Some insurance industry, including Hank Greenberg, do not believe that it is always possible to maintain a profit of floating without a profit and underwriting, but this view is not universally. Naturally, the "float" method is difficult to be carried out in an economically depressed period. In declining markets caused insurers to abandon the investment and strengthen their underwriting standards. So, a bad economy, generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the "subscription" or cycle of insurance. [6]

Property and casualty insurers currently the most money on their auto insurance industry. Generally better statistics are available on auto and underwriting losses on this line of business has greatly benefited from advances in computing. In addition, property losses to the USA, because of natural disasters have exacerbated this trend.

Finally, claims and loss handling is the materialized usefulness of insurance. In managing the processing of applications function, insurers seek to balance the elements of customer satisfaction, administrative expenses, and claims too many leaks. Under this balance, the fraudulent practices of insurance are a major business risk that must be managed and overcome.

Liability insurance

noreply@blogger.com (Indra) — Wed, 6 Feb 2008 10:35:00 +0700

Liability insurance is a very large-which covers all legal claims against the insured. Many types of insurance include an aspect of civil liability. For example, an owner of the insurance policy will normally include liability coverage that protects the insured in case of an application made by a person who slips and falls on the property, automobile insurance also includes an aspect of liability insurance that indemnifies against attacks as a car crash can cause to other people's lives, health or property. The protection offered by a liability insurance policy is twofold: a legal defence in case of any action taken against the policyholder and compensation (payment on behalf of the insured) in respect of a settlement or court verdict. The liability policies generally cover only the negligence of the insured, and will not apply the results of voluntary or intentional acts of the insured.

* Environmental liability insurance protects the insured for personal injury, property damage and cleanup costs as a result of the dispersal, release or escape of pollutants.
* Insurance errors and omissions: See "professional liability" under "Liability insurance".
* Professional liability insurance, also known as professional indemnity insurance, protects professionals such as architects, lawyers, doctors, accountants and neglect against possible claims by their patients / clients. Professional Liability Insurance May take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession May be called malpractice insurance. The notaries public to take May errors and omissions insurance (E & O). Other potential E & O provided include, for example, real estate brokers, home inspectors, experts and websites.
* Directors and officers liability insurance protects a body (usually a company) costs associated with litigation resulting from mistakes incurred by the directors and officers for which they are responsible. In industry, it is generally known as "D & O" for short.
* Average compensation insurance protects the insured to assign a top prize at a specific event. Examples include offering prizes to competitors who can make a half-court shot at a basketball game or a hole-in-one at a golf tournament.

History of insurance

noreply@blogger.com (Indra) — Wed, 6 Feb 2008 10:13:00 +0700

In a sense, we can say that insurance appears simultaneously with the emergence of human society. We know two types of economy in human societies: saving money (with markets, money, financial instruments, etc.) and not money or natural economies (excluding money markets, financial instruments and so forth). The second type is an older form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns, members of the community help build a new one. If the same thing happen to his neighbor's other neighbours must help. Otherwise, neighbors will not receive help in the future. This type of insurance has survived until today in some countries where money modern economy with its financial instruments is not widely available (for example countries on the territory of the former Soviet Union).

Regarding insurance in the modern sense of the term (ie, insurance in a modern cash economy in which insurance is part of the financial sphere), the early transfer methods or distribution of risk were performed by Chinese and Babylonians operators from the 3rd and 2nd millennia BC, respectively. Merchants Chinese who travel treacherous river rapids redistribute their goods in many vessels to limit losses in a single capsizing of the vessel. The Babylonians developed a system that has been recorded in the famous Code of Hammurabi, c. In 1750 BC, and put into practice in early Mediterranean sailing merchants. If a trader has received a loan to finance his expedition, he should pay the lender an additional sum in exchange for guaranteeing the lender to cancel the loan should be sending flight.

Achaemenian monarchs were the first to insure their people and has been officially recorded by the insurance governmental notary. The insurance tradition has been carried out each year in Norouz (beginning of the Iranian New Year), leaders of different ethnic groups and others willing to take part, presented gifts to the monarch. The largest donation was presented during a special ceremony. When a gift is worth more than 10000 Derrik (Achaemenian gold coin), the question was registered in a special office. This has been beneficial for those who present such gifts. For others, the gifts were fairly assessed by the confidence of the court. Then, the assessment was registered in offices.

The purpose of registration is that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court help. Jahez, a historian and writer, wrote in one of his books on ancient Iran: "[W] Henever the owner of this is a problem or wants to build a building, set up a party, her children married, so a in charge of this issue in the court to verify the registration. If the amount exceeded 10000 Derrik registered, he or she will receive an amount twice as much. "[1]

A thousand years later, the inhabitants of Rhodes invented the concept of "average". Merchants whose goods were shipped together, pay a premium divided proportionally to be used to repay any merchant whose products have been thrown overboard during the storm or depression.

The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "corporate welfare" that supported families and paid the funeral expenses of members for death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of property insurance. Before insurance was created in the late 17th century, "societies" are in England, where people donated money to a sum which could be used in case of emergency.

Separate insurance contracts (ie, insurance policies not bundled loans or other types of contracts) were invented in Genoa in the 14th century, as well as insurance pools backed by pledges of landing areas. These new insurance contracts allowed insurance must be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance has become much more sophisticated in the post-Renaissance Europe, and specialized varieties developed.

Towards the end of the seventeenth century, London importance increasingly as a centre of trade increased demand for marine insurance. In the late 1680, Mr. Edward Lloyd opened a coffee has become a popular haunt of ship owners, merchants, ships and captains and, therefore, a reliable source of the latest Shipping News. It became the meeting place for parties wishing to secure cargo and vessels, and those who are willing to support such initiatives. Today, Lloyd's of London remains the largest market (note that this is not an insurance company) for marine and other specialist types of insurance, but it works differently than the more familiar types of insurance.

Insurance as we know it today can be attributed to the great fire of London, which in 1666 devoured 13200 houses. In the wake of this disaster, Nicholas Barbon opened an office to ensure buildings. In 1680, he created the first England Fire Insurance Company, "The Fire Office," to ensure the brick and frame homes.

The first insurance company in the USA subscribed fire insurance and was trained at Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make the standard practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses losses by fire. Franklin company was the first to contribute towards the prevention of fires. Not only is his company to guard against risks of fire, he refused to insure certain buildings where the fire risk was too great, like all wooden houses. In the USA, regulation of the insurance industry is very fragmented, with the primary responsibility assumed by the State Insurance. Considering that insurance markets are centralized nationally and internationally, State Insurance Commissioners operate individually, although sometimes in a concert by the National Insurance Commissioners organization. In recent years, some have called a dual state and federal regulatory system for insurance similar to that which oversees state banks and national banks.

Principles of insurance

noreply@blogger.com (Indra) — Sun, 3 Feb 2008 10:03:00 +0700

Commercially insurable risks generally share common characteristics in September. [1]

1. A large number of homogeneous units of exposure. The vast majority of insurance policies are provided for individual members of very large classes. Car insurance, for example, covered about 175 million cars in the USA in 2004. [2] The existence of a large number of homogeneous units exhibition enables insurers to benefit from the so-called "law of large numbers", which, in fact, said that the number of units of exposure increases, actual results are increasingly likely to bring the desired results. There are exceptions to this criterion. Lloyd's of London is famous for the life or health of actors, actresses and athletes. Satellite Launch insurance covers events that are infrequent. Commerciaux large property policies May ensure exceptional properties for which there is "consistent" exposure. Despite failing on this criterion, many exhibitions like these are generally considered insurable.
2. Loss final. The event that gives rise to the loss which is subject to insurance should, at least in principle, take place at a time known in a familiar place, and a known cause. The classic example is the death of an insured on a life insurance policy. Fire, automobile accidents, injuries and workers May easily meet this criterion. Other types of losses May be defined only in theory. Occupational diseases, for example, involve May prolonged exposure to harmful conditions where no time, place or cause is identified. Ideally, time, place and cause of the loss must be sufficiently clear that a reasonable person, sufficient information, could objectively verify all three elements.
3. The accidental loss. The event is the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss must be "pure" in the sense that it resulted from an incident for which he is the only possibility for the costs. The events that contain speculative elements, such as ordinary commercial risks, are generally not considered insurable.
4. Large loss. The size of the loss must be meaningful from the standpoint of the insured. Insurance premiums needed to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and provide the capital necessary to reasonably ensure that the insurer will be able to pay claims. For small losses of these costs last May to be several times the size of the cost of losses. There is no need to pay these costs unless the protection afforded a real value to a buyer.
5. Affordable Premium. If the probability of an accident is so high, or the cost of the event so important that the premium income is high compared to the amount of protection offered, it is unlikely that someone buy insurance, even if the offer. In addition, as the accounting profession officially recognized in the financial accounting standards, the premium may not be important if there is not a reasonable chance of a major loss for the insurer. If the absence of such a loss of chance, the operation May in the form of insurance, but not the substance. (See U.S. Financial Accounting Standards Board standard number 113)
6. Loss calculable. There are two elements which must be at least estimable, if not formally to calculate the probability of loss, as well as costs. Probability of loss is generally an empirical exercise, while the cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and proof of loss to a request made under This policy of making a reasonably accurate and objective assessment of the loss amount recoverable as a result of the claim.
7. Risk limited major catastrophic losses. The main risk is often aggregation. If the same event can cause losses to many policyholders the same insurer, the ability of the insurer to issue policies becomes limited, not by factors surrounding the characteristics of a police, but by factors surrounding the sum of all insured so exposed. Typically, insurers prefer to limit their exposure to a loss of one event for a small portion of their capital base, on the order of 5 per cent. If losses can be aggregated, or an individual policy could produce exceptionally large claims, the capital will be forced to restrict an appetite for insurance policyholders. The classic example is the earthquake insurance, where the capacity of an underwriter to issue a new policy based on the number and size of the policies he has already exercised. Wind insurance in the hurricane zones, particularly along the coast, is another example of this phenomenon. In extreme cases, aggregation may affect the whole sector, since the combined capital of insurers and reinsurers may be low compared to the needs of potential policyholders in areas prone to risk aggregation. In commercial fire insurance, it is possible to isolate properties whose total value is exposed beyond any individual insurer's capital constraint. These properties are generally shared among several insurers or which are provided by a single insurer that unions risk in the reinsurance market.

Insurance

noreply@blogger.com (Indra) — Thu, 6 Dec 2007 08:43:00 +0700

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of risk of loss, from one entity to another, in exchange for a premium. The insurer is a company selling insurance. The rate of insurance is a factor used to determine the amount, called premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of assessment and risk control has evolved as an area of study and practice.

Types of insurance

noreply@blogger.com (Indra) — Tue, 6 Nov 2007 10:29:00 +0700

The risks that can be quantified can be assured. At specific types of May might give rise to claims are known as the "perils". An insurance policy outline in detail what are the risks covered by the policy and which are not. You will find below (not exhaustive) lists the various types of insurance available. A single policy May cover risks in one or more of the categories listed below. For example, auto insurance would normally cover both property risk (covering the risk of theft or damage to the car) and liability risk (on a complaint of causing an accident). An owner of the insurance policy the USA typically includes property insurance covering damage to the house and the owner of property, liability insurance covering certain legal rights against the owner, and even a small amount of the health insurance for medical expenses of people who are wounded in property owner.

The insurance company can be any type of insurance that protects businesses against risks. Some subtypes of major insurance companies are: (a) different types of professional liability insurance, also known as professional indemnity insurance, which are discussed below under this name, and (b) the owners d Business Policy (BDP), which bundles a policy many types of coverage that a business owner must, in a manner similar to how homeowners insurance package that guarantees a house.