Insurance in the Act is an agreement between two or more parties, with which the insurer is binding to the insured, by accepting insurance premiums, to provide reimbursement to the insured for loss, damage or loss of expected benefits or legal liability to third parties who may be suffered by the insured, arising out of an uncertain event, or provide a payment based on the life or death of an insured person.
Agencies that distribute the risk of so-called "insured", and the body receiving the risk of so-called "insurer". The agreement between the two bodies is called the policy: This is a legal contract that explains each of the terms and conditions protected. Fees to be paid by the "insured" to the "insurer" for the risks covered by so-called "premium". This is usually determined by the "insurer" for funds that can be claimed in the future, administrative costs, and profits.
Insurers use actuarial science to calculate the risks they expect. Actuarial science uses mathematics, especially statistics and probability, which can be used to hedge risks to estimate the claim at a later date with a reliable accuracy.
For example, many people buy homeowners insurance policy and then they pay premiums to the insurance company. If the loss of a protected place, the insurer must pay the claim. For some of the insured, the insurance benefits they receive far greater than the money they had paid to the insurer. Others may not make a claim. If it is averaged from all policies that are sold, the total claims paid out lower than the total premiums paid to the insured, the difference is the cost and benefit.
Insurance companies also benefit investments. This is obtained from investing premiums received until they have to pay the claim. This money is called "float". Insurers can benefit or harm from price changes in the float and also interest rates or dividends on the float. In the United States, loss of property and deaths recorded by the insurance company is U.S. $ 142.3 billion within five years ending in 2003. But the total profit in the same period was U.S. $ 68.4 billion, as a result of the float.
Some people think of insurance as a form of betting that apply during the policy period. Insurance companies are betting that property buyers will not be lost when the buyer pays the money. The difference in fees paid to the insurance company against the amount they can receive when the accident occurred about the same as if someone bet on horse racing.( Let's To The Bank )
0 comments:
Post a Comment