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How do insurer determine appropriate premiums for policyholders?
Kizzy1on1
by evaluating risk classifications
Wiki User
∙ 13y ago
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How do insurance companies set premiums?
In fact when an insurer brings in a new policy, market survey about the viability of the policy is surveyed before hand. Further, the Valuers who are paid fat remuneration packet are there to determine how much premia should be worth while so that the policy can run smoothly for mutual benefits of both insurer and policy holders.
What is significant regarding premiums and benefits of private commercial insurance companies?
In any insurance scenario, a premium is the periodic payment made to the insurer by the insured. Essentially, it is the price paid to the insurer in return for which the insurer agrees to assume a certain bundle of risks of loss that the insured wishes to transfer. That "bundle" is set forth in the terms of the written insurance policy. Insurance premiums, and insurance generally, is regulated by the States in which the insurer transacts business. One the primary factors with which the regulator is concerned is that the premium charged is sufficient to offset the risk. It cannot, however, be either excessive or unfairly discriminatory. This means that insurance rates, from which premiums derive, must be the same for all insureds of the same risk class. Those risk classes vary greatly in commercial insurance due to the many and varied kinds of risks that can be insured.
Why would an insurance company pay the insurer and not the company that did the services?
i think its insurer who handle all the activity that's why but if you want best answer on this then visit ICICI Lombard site for more support on insurance question.
What does the contribution principle determine in life insurance?
The concept has primary application to property insurance rather than to life insurance. In the context of property insurance, assume that the property owner or other person having an insurable interest in a building buys 2 policies from different insurers for, say $2million each. If a loss occurs and the insured makes a claim against one of the insurers, and it is paid, the paying insurer would have a right to recover half of its payment from the other insurer. In the context of life insurance, an insured can have multiple policies. As long as there is full disclosure to each of the insurers of the existence of the other(s), and each insurer is willing to underwrite the risk despite the existence of the other policy, each policy stands alone and pays upon the death of the insured. Naturally, the terms, conditions, and exclusions of the policy control whether or not payment is actually made.
What is the meaning of reinurance premium ceded?
Premium paid to reinsurers under reinsurance treaties to transfer a portion of the insurer's risk.
The person appointed to attend to grievances of policyholders is called?
The person appointed to attend to grievances of policyholders is typically called an ombudsman in the insurance industry. They are responsible for investigating complaints from policyholders and ensuring fair resolution of disputes between the insurer and the insured.
Is a mutual insurance company Not-for-profit?
A mutual insurance company is a corporation owned by its policyholders who may receive dividends if the insurer's operations are profitable.
What are equitable premiums?
A premium that is justified basis the amount of risk that an insured brings on to the insurer.
What is an insurance company that does exclude a member?
Your question is unclear as written. An insurance company that is formed as a stock company does not have "members"; it is owned by its shareholders like any other corporation. However, a "mutual" insurer is owned by it policyholders by virtue of their status as policyholders. In that respect, they might be deemed to be "members"/
What is Combined ratio in property and casualty?
Combined ratio is a simple measure of insurer profitability. Losses + expenses / Earned premium > 100% : insurer is paying out more in losses, expenses, and claims than it is earning in premiums. < 100% indicates greater premiums than losses, expenses, and claims.
How do insurance companies set premiums?
In fact when an insurer brings in a new policy, market survey about the viability of the policy is surveyed before hand. Further, the Valuers who are paid fat remuneration packet are there to determine how much premia should be worth while so that the policy can run smoothly for mutual benefits of both insurer and policy holders.
In what class of life insurance are individual life insurance policies issued to members of a group with an employer or other body collecting or remitting the premiums to the insurer?
"In what class of life insurance are individual life insurance policies issued to members of a group with an employer or other body collecting or remitting the premiums to the insurer?"
What happens to life insurance policy if the company is bought by another company?
Ordinarily the company that buys the insurer that issued (your) policy will assume all of the liabilities of the insurer that issued your policy. Doing so is normally a condition of the merger of the two insurers. The terms and conditions of your insurance policy should remain the same, although you may be instructed to pay premiums to a different entity. State Departments of Insurance will require one or both companies to ensure that policyholders are advised of the transaction. It is therefore important that you read and understand all mail that comes from insurers, even if you do not immediately recognize the name of the insurer (because some may come from the acquiring insurer). You may also be notified of the acquisition from the State Department of Insurance, so be sure to read and to understand all mail from it.
Implication of underinsurance in an economy?
low premiums to the insurer hence low funds for investment and also the insured is not fully covered in the event of a loss he is not fully indemnified
Do mutual insurance companies offer lower rates to consumer than publicly owned stock insurance companies?
No. The fact that n insurer has a mutual structure means that it is owned by its policyholders; a stock insurer is one, like any other business, that can sell shares to the public. Both types of insurers are regulated by state departments if insurance. The regulation extends to issues of solvency (the ability to pay claims as accrued)) the lines of business that the company is authorized to write and the manner in which claims are handled. Statutory law dictates the financial aspects of the operation (sufficiency of assets, for example) and the forms that the insurer can use to issue policies. Regulators also ensure that the rates (which translate into premiums) are neither excessive nor insufficient
If you are the primary policy holder in a group policy and one of group policy members gets into an accident with his own car whats the impact to Primary Policy Holder?
Your premiums could be affected, Talk to your insurer and find out because every insurer is different on situations like this.
What describes dividends paid on life insurance policies?
A dividend represents a distribution of earnings made by a mutual life insurance company to its policyholders. From the standpoint of corporate structure, a mutual company is owned by the policyholders--therefore, they benefit from the earnings. The distribution may be in cash, by additional paid-up insurance, or in some other form. The insureds designate how they want dividends distributed to them when they apply for insurance through the insurer.
