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How to get loss of income insurance


In law and finance, insurance is a form of risk organization used above all to escape the risk of a dependent and uncertain loss. Insurance is defined as the equitable transfer of the risk of loss, from one entity to another, in exchange for payment. An insurer is a business that sells insurance; an insured or a policyholder is the natural or legal person who purchases the insurance strategy. The insurance rate is a question used to decide how much to charge for a certain amount of insurance declaration, called the finest. 

Risk management, life outside of assessing and calculating risk, has become a separate area of ​​study and practice.

The agreement implies that the insured assumes a certain and known comparatively small loss in the form of payment to the insurer in exchange for the insurer's promise to reimburse (indemnify) the insured in the event of a large, possibly crushing loss. The insured receives an agreement called an insurance policy which details the circumstances and conditions under which the insured will be remunerated.

Principles


Insurances committing pooling funds from many insured units (called introductions) to pay for the relatively rare but extremely overwhelming losses that can occur to these entities. The insured entities are therefore protected from the risk of costs, the costs being necessary according to the incidence and the seriousness of the event. To be insurable, the risk insured at the same time must respond to a certain individuality in order to be an insurable risk. Insurance is a marketable business and an important part of the financial services industry, but individual entities can also self-insure by saving money for probable future losses.

Insurability


The risks that can be insured by private companies are generally divided into two by seven common individuality.

Large number of similar exhibition units. Since insurance operates by pooling of capital, the preponderance of insurance policies is intended for entities that are members of the large classes, which allows insurers to benefit from the law of large numbers in which expected losses are similar to actual losses. Exceptions include Lloyd's of London, which is famous for securing the life or health of actors, actresses and sports figures. However, all exposures will have significant differences which can lead to different rates.

Specific loss. The loss takes place at a known time, in a known place and for a known cause. The classic example is the death of a person insured on a life insurance policy. Fires, auto accidents, and worker injuries can easily address this deciding factor. Other types of losses can only be definitive in theory. Job-related illnesses, for example, may involve prolonged exposure to harmful conditions where no specific time, place or cause is particular. Preferably, the time, place and cause of a loss should be clear enough that a reasonable person, with enough information, can dispassionately verify the three fundamental principles.

Accidental loss. The event which constitutes compensation for a claim must be accidental, or at least beyond the control of the beneficiary of the insurance. The loss must be "pure", in the sense that it results from an event for which there is only one cost opportunity. Events that contain rough basics, such as ordinary business risks, are generally not assessed as insurable.

Big loss. The magnitude of the loss must be significant from the point of view of the insured. Insurance premiums should cover both the foreseeable cost of claims, plus the cost of issuing and administering the strategy-policy, the adjustment of deaths and the provision of the capital necessary to rationally ensure that the he insurer will be able to pay claims. For small losses, these latter costs can be several times greater than the expected cost of losses. There is no need to pay such fees except that the defense offered has real value to a buyer.

Affordable premium. If the probability of an insured event is so high, or the cost of the event so high, that the resulting premium is a large family member for the amount of defense that can be obtained, it is unlikely that anyone who buys insurance, even if it is offered. In addition, since secretarial staff are officially familiar with financial secretarial standards, the premium cannot be so high that there is no risk.

Calculable loss. There are two fundamental elements which must be at least admirable, if not formally quantifiable: the prospect of loss and the cost of the aid. The probability of loss is usually experiential work, while the cost has more to do with a sane person's ability to control a copy of the insurance policy and proof of loss related to a claim made under it. police to make a rational definition. and an objective assessment of the amount of loss recoverable as a result of the claim.

Limited risk of catastrophically large losses. Insured people are in an ideal, self-sustaining, non-catastrophic world, which means that the vanquished does not happen all at once and the character losses are not severe enough to bankrupt the insurer; insurers may prefer to limit their disclosure to a single event loss to a small portion of their capital base, in the order of 5%. Assets limit the ability of insurers to sell earthquake insurance as well as wind insurance in hurricane areas. In the United States, the risk of flooding is insured by the federal government. In commercial fire insurance, it is possible to find individual goods, the total exposure value of which is much greater than the capital limit of any life insurer. These assets are normally shared between several insurers or are insured by a single insurer who syndicates the risk in the reinsurance bazaar.

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