Category: Insurance Fundamentals
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Car insurance
Car insurance provides financial protection. Financial protection mitigates losses. Losses result from vehicle accidents. Vehicle accidents incur costs. Costs include vehicle repairs. Costs also encompass medical expenses. Car insurance policies stipulate covered events. Covered events vary across policies. Policies define payment terms. Payment terms determine claim settlements. Claim settlements cover financial obligations. Financial obligations arise…
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Reinsurance
Reinsurance mitigates risk for insurance companies. It allows sharing of risk among multiple insurers. Reinsurance stabilizes the insurance market. Reinsurance offers financial protection. It ensures insurance companies can cover large claims. Reinsurance enhances insurers’ capacity for underwriting. Reinsurance increases insurers’ risk-bearing capacity more than reserves do. Reinsurance provides broader coverage than individual insurance policies. It…
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Mutual insurance company
Mutual insurance company offers insurance products. Insurance products protect clients. Clients face financial risks. Contents: The Origins of the Mutual Insurance Model How Policyholders Benefit from Membership The Role of Surplus Sharing Comparing Mutual and Stock Insurance Companies The Governance Structure of Mutual Insurers Challenges in Regulatory Compliance Advantages of Mutual Insurance in Market Crises…
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Loss (in insurance contracts)
Insurance contracts define loss as an event, causing financial detriment. Policyholders report loss to insurers for compensation. Insurers assess loss for claims validation. Contents: Definition and Types of Loss in Insurance Context Understanding Covered Losses Exclusions in Loss Coverage Calculating the Value of a Loss The Claims Process: Reporting and Assessment The Role of Deductibles…
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Policyholder
A policyholder refers to an individual. An individual possesses a policy. A policy is an insurance contract. Contents: Understanding Your Rights as a Policyholder Navigating the Claims Process Efficiently The Importance of Reading Your Policy Document How to Update Your Insurance Coverage The Role of the Policyholder in Risk Assessment Best Practices for Communicating with…
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Insured person or entity
Insured person refers to an individual. Insured person receives insurance coverage. Insurance coverage protects from potential financial losses. Contents: Understanding the Basics of Insured Individuals Eligibility Criteria for Insured Status Types of Insurance Coverages Available Differences Between Insured and Beneficiary Entities That Can Be Insured Personal vs. Commercial Insurance Policies Assessing Risk: The Insurance Company’s…
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Insurance broker
An insurance broker is a person who acts as an intermediary for several insurance companies, without being exclusively linked to any of them, marketing insurance contracts to his clients in order to obtain a commission for this sale. In the English-speaking world he is known as a broker. The qualification required to practice as such…
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Travel insurance
Travel Insurance or travel assistance is a set of services offered by assistance management companies and/or insurance companies, in which a team of professionals acts 24 hours a day to solve any inconvenience that may arise during the trip. Generally, these inconveniences are usually illnesses or accidents; although many companies also offer other services such…
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Life insurance
Life insurance is an insurance policy that covers the risk of death, survival and disability. Life insurance covers risks that may affect the existence, integrity or health of persons. In order for the insurance to be effective, an insurance contract must be formalized. Life insurance Life insurance is a specific type of insurance within personal…
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Premium (insurance)
In the insurance field, the premium is the cost of the insurance or economic contribution to be paid by an insured or contracting party to an insurance company for the transfer of risk under the coverages offered by the latter to its clients during a certain period of time. Commonly this can be through the…
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Deductibles
The deductible is a entity of insurance law and is defined as the insured ‘s participation in the loss caused by the loss and its purpose is for the insured to do everything in his power to prevent the loss from occurring. Generally, the amount of the deductible can be agreed with the insurer under…
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Coinsurance
The term coinsurance can refer to two different concepts, both related to insurance and the sharing of risk among several parties. Several coexisting insurances Coinsurance, by this definition, is an insurance contract underwritten on the one hand by the insured and on the other hand by several insurers who assume with complete independence from each…
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Multi-risk home insurance
Multi-risk home insurance is the insurance by which the owner or holder of a home (or in other varieties, of commercial premises) tries to cover himself against the risks of it suffering damages of various kinds: derived from electrical short circuits, burst pipes, various breakdowns, domestic accidents, caused by storms, theft, etc. Also for civil…
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Real estate title insurance
Real estate title insurance, also called simply “title insurance” is an American invention, whose use is widespread in that country, having gained special importance during the last century. Its current use extends to practically all countries in North, Central and South America in all types of real estate transactions, including commercial and residential. Description of…
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What is an insurance company?
An insurance company or insurer is a company specializing in insurance, whose economic activity consists in providing a security service, covering certain economic risks (insurable risks) to economic units of production and consumption. Its activity is an operation to accumulate wealth, through the contributions of many subjects exposed to unfavorable economic events, in order to…
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Compulsory personal accident insurance
The compulsory personal accident insurance is an insurance required for the circulation of motor vehicles and for obtaining a driving license. The requirement differ between countries. Insurance coverage The insurance covers the risks of death and physical injuries that are a direct consequence of accidents suffered by persons in which the insured vehicle is involved.…
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What is an insurance contract?
The insurance contract is the agreement by which the insurer, in exchange for the payment of a price, called premium, by the policyholder, undertakes to compensate for a damage or to pay a sum of money to the other party, the policyholder, upon the occurrence of the eventuality foreseen in the contract. The insurance contract…
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What types of insurance are there?
Insurance contracts can be classified in different ways, one of which divides them into insurance against damages and personal insurance. Insurance against damages This type of insurance pursues the strict indemnity of the damage suffered, the insurer is limited to providing the value that replaces the loss suffered by the insured. The amount is not…