7:53 AM
Unknown
Many a times people are faced with incidences that suddenly alter the course of their lives. Such sudden incidences could be road traffic accidents, life threatening illnesses, loss of a job and so on and so forth. It is for this reason that people get insurance to cater for the related financial costs. These are a number of basics of insurance Greenville NC residents will find worth knowing when looking for a cover.
To begin with, it is important that certain terms are clearly defined. The insured, also known as the policy holder is the party in need of insurance. An underwriter or insurer is the party concerned with providing the services. The amount of money paid by the policy holder is referred to as the premium. In the event of a claim that is too large to be handled by the concerned insurance company, this same company can decide to share the risk with another capable company. This is what is technically called reinsurance.
Resource pooling is the backbone of insurance. Essentially, a group of individuals contribute a sum of money that goes into covering the risk of one of them. Frequency and severity of risk dictates how much the insured has to pay. The alternative to pooling resources is self insurance. In this case, a single person takes time to save money that can be utilized in potential risks later on.
The number of people exposed to a given risk determines its ability to be insured . Many people have to be affected by a certain factor for it to considered insurable because finances have to be put together to facilitate running of the company. The amount of damage also determines insurability. This means that tiny losses can simply be taken care of by the individual.
In addition, a risk has to be definite for it to be insured. In the case of an illness or death, the exact cause should be known. There is also a need to know when and where the death occurred. The factor determining how insurable a risk is is the amount of premium demanded for it. If the premium is too high, this may be repulsive to the public.
Common options available in the market today are cover for life, health, housing and motor vehicle. These can be broken down further depending on policies associated with each. To give an example, motor vehicle cover can cater for only damage to machine or it can be broadened to involve the well-being of owners in the event of an accident.
There are certain legal requirements that come with a policy. For one, the insurer must provide the necessary indemnification for the policy holder. Ideally, the victim should be compensated for all losses incurred. Otherwise, they can come to an agreement with the company on how much can be compensated.
In conclusion, assurance is a concept that should be embraced by all and sundry. The benefits associated with it cannot be overemphasized. It enables an individual to be better prepared for any catastrophe that may come along unanticipated.
To begin with, it is important that certain terms are clearly defined. The insured, also known as the policy holder is the party in need of insurance. An underwriter or insurer is the party concerned with providing the services. The amount of money paid by the policy holder is referred to as the premium. In the event of a claim that is too large to be handled by the concerned insurance company, this same company can decide to share the risk with another capable company. This is what is technically called reinsurance.
Resource pooling is the backbone of insurance. Essentially, a group of individuals contribute a sum of money that goes into covering the risk of one of them. Frequency and severity of risk dictates how much the insured has to pay. The alternative to pooling resources is self insurance. In this case, a single person takes time to save money that can be utilized in potential risks later on.
The number of people exposed to a given risk determines its ability to be insured . Many people have to be affected by a certain factor for it to considered insurable because finances have to be put together to facilitate running of the company. The amount of damage also determines insurability. This means that tiny losses can simply be taken care of by the individual.
In addition, a risk has to be definite for it to be insured. In the case of an illness or death, the exact cause should be known. There is also a need to know when and where the death occurred. The factor determining how insurable a risk is is the amount of premium demanded for it. If the premium is too high, this may be repulsive to the public.
Common options available in the market today are cover for life, health, housing and motor vehicle. These can be broken down further depending on policies associated with each. To give an example, motor vehicle cover can cater for only damage to machine or it can be broadened to involve the well-being of owners in the event of an accident.
There are certain legal requirements that come with a policy. For one, the insurer must provide the necessary indemnification for the policy holder. Ideally, the victim should be compensated for all losses incurred. Otherwise, they can come to an agreement with the company on how much can be compensated.
In conclusion, assurance is a concept that should be embraced by all and sundry. The benefits associated with it cannot be overemphasized. It enables an individual to be better prepared for any catastrophe that may come along unanticipated.
About the Author:
Get a summary of important factors to keep in mind when choosing an insurance Greenville NC company and more information about a reliable company at http://www.weatherlyinsuranceagency.com now.
0 comments :
Post a Comment