What is insurance ? | what are the insurance policy?

How would you define insurance?

Let’s start with an important topic in our life. Toady going to share what is insurance and its types, its definition, its benefits, and also its principle. Insurance companies pay you or someone you choose if something bad happens to you and if you choose a policy that protects you. Therefore, Insurance is a way to manage your risk and get feedback. If you don’t have insurance and an accident occurs, you may be responsible for all costs associated with it and also have to face yourself. Moreover, when you purchase insurance from any insurance company, you’ll receive an insurance policy, which is a legal contract between you and your insurance provider.

what is insurance
what is insurance

Who founded the insurance industry?

Benjamin Franklin founded the first American insurance company in 1752, known as the Philadelphia Contribution ship. In 1759, the Presbyterian Ministers’ Fund became the first stock life insurance company in the American colonies. Then, The state of New York alone had 17 stock life insurance companies by 1820.

How many types are there?

There are three main types of insurance for us.

  1. property
  2. liability
  3. and life.

How does it work and what is an example?

In general, the compensation paid is proportional to the damage caused by the unfortunate event. If my house contents are insured, and a flood damages them by $20,000, I will receive that $20,000 as compensation for replacing or repairing the damaged items.

How do the 7 principles of insurance work?

When do you need an attorney and what is the main thing you need to open insurance?

  • The principle of good faith.
  • Insurance interests.
  • The principle of proximate cause.
  • An indemnity agreement.
  • The subrogation clause.
  • Financial contributions.
  • Get back what you’ve lost.

As well as giving individuals a sense of security, insurance is an excellent way of avoiding losses or shifting them to another party. Moreover, it mobilizes the savings of individuals in the form of investments in the policies, which are then reinvested by the insurance companies in public-listed securities, earning dividends.

Why is insurance necessary?

In addition to paying for medical emergencies, hospitalization, illnesses and treatment, and medical care that may be needed in the future, insurance will also cover the financial loss suffered by the whole family if a sole provider dies unexpectedly.

 What exactly is the policy?

A person who purchases insurance pays the insurance company. These payments are called premiums. By paying premiums, you are protected from certain risks, and the company assures you that they will pay for any losses.

What is the way insurance makes money?

The company makes a profit by receiving higher premiums than it receives from claims. Underwriting profit is the main source of profit for the company. In addition, companies invest in the premiums they receive as additional investment income.

What is the feature?

Finally, an insurance policy is a device used to share financial losses that may befall a person or his family if the occurrence of a specific event occurs…

  • A cooperative policy.
  • The value of risk.
  • Contingency payments…
  • Compensation for fortuitous losses…
  • The amount of the payment.
  • A large number of insured individuals.

Learn more about it

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