Insurance

We can define the terms of insurance in many ways. The protection of our property of any types from financial loss is known as insurance. Which entity provides insurance is known as an insurer, insurance company, etc. Some loss of property has insured. But in some cases, it must involve something in which the insured loss has an insurable interest.

Social effects Insurance

Insurance have many types of effects on people through way ( main and important effect ) that insurance changes who bears the cost of losses and damage. It can be increase fraud. But it can help societies and individuals prepare for catastrophes.

Methods of insurance

There are four methods of insurance:

  1. Co-insurance – risks shared between insurers.
  2. Dual insurance – risks having two or more policies with same coverage (Both the individual policies would not pay separately- a concept named contribution, and would contribute together to make up the policyholder’s losses. However, in case of contingency insurances like Life insurance, dual payment is allowed).
  3. Self-insurance – In this insurance, in situations where risk is not transferred to insurance companies and solely retained by individuals themselves.
  4. Reinsurance – In situations, when Insurer passes some part of or all risks to another Insurer called Reinsurer.

Claims

Claims may be filed by insureds directly with the insurer or through brokers or agents. The insurer may be select claim filed form ( insurer may require that the claim be filed on its own proprietary forms, or may accept claims on a standard industry form ). If a claims adjuster suspects under-insurance, the condition of average may come into play to limit the insurance company’s exposure.

Insurance company claims departments employ a large number of claims adjusters supported by a staff of records management and data entry clerks. The role of an adjuster is very important for all insurance companies. The adjuster undertakes an investigation of each claim, usually in close cooperation with the insured, determines if coverage is available under the terms of the insurance contract, and if so, the reasonable monetary value of the claim, and authorizes payment.

Policy

Insurance policy is also important for insurance. It describe about rules of insurance company. Insurance companies discuss with clients about their policy. The policyholder may hire their own public adjuster to negotiate the settlement with the insurance company on their behalf. For policies that are complicated, where claims may be complex, the insured may take out a separate insurance policy add-on, called loss recovery insurance, which covers the cost of a public adjuster in the case of a claim.

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