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At its most basic, insurance deals with shifting risk. Otherwise stated, a person or entity that stands to incur a financial loss can transfer the financial risk of loss to an insurer. In return, the person or entity pays a premium to the insurer for accepting the risk of loss. A premium derives from a "rate", which is the cost of $1000 in coverage. Therefore, the premium is derived by multiplying the rate by the amount of coverage sought.
Not all risks are insurable. One must have an "insurable interest" in the property or event to be insured. This means that the person seeking insurance must have a legal and economic stake in the continued existence of the item to be insured; this can be property or a life. Absent an insurable interest, insurance is essentially a wagering contract. Likewise, the object of the insurance must be legal and not contrary to public policy.
What else can I help you with?
What are the function of policy form in an insurance?
The function of a policy form in an insurance is to provide all the provisions from the insurance firm to the party being insured. This serves more or less like the insurance contract.
What is the function of private hire insurance?
Private hire insurance is insurance provided to Private Hire drivers, or Taxi drivers, as they're better known! The function is to provide insurance and indemnification against legal and medical costs in the event of an accident.
What is the function of dismemberment insurance?
The function of dismemberment insurance is to provide financial support or recompense in case the insured person looses a finger, foot, arm, etc.
What is the primary function of insurance?
The primary function of insurance company is to provide protection from adverse events. The insurance companies accept premium payments in exchange for companies in the eventthat certain specified but undesirable, event occure.
What is the function of car insurance?
I recommend you this site where you can compare quotes from different comapnies: INSURANCE-QUOTES-FREE.INFO
What is the role of insurance in risk management?
1. function 2. benefits.
What has the author David Whiteman written?
David Whiteman has written: 'Liability insurance availability and affordability problems as a function of property-casualty insurance market fluctuations' -- subject(s): Casualty Insurance, Insurance, Casualty, Insurance, Liability, Insurance, Property, Liability Insurance, Policies, Property Insurance
What is the function of disability insurance?
Disability Insurance pays when you get injured working. It's used to pay bills like the electric, and the mortgage.
What type of insurance would a Thai restaurant need to legally function?
There is a specific type of insurance for all restaurants. For Thai restaurants , it would be ideal to get a commercial property insurance or in the alternative, a general liability insurance.
What is the function of Life Insurance Association Malaysia?
IM stupid organization haha
What is a function of the Federal Deposit Insurance Corporation?
guarantee successful investments to americans
Child is injured during school function at teachers house is she liable?
If the school function was authorized by the school and/or school district, then their insurance will be in force. The teachers home hazard insurance could also come into play. Leave all that detail to the insurance carriers - that's what they are paid the big bucks for doing.
