The proper definition of insurance is an arrangement between a company and a customer, by which the company provides the customer with protection against loss or damage such as theft, or death, in exchange for the payment of a premium by the customer. What this basically means is that insurance protects you in the case of an unforeseen circumstance that could not be avoided. This protection is provided as a result of premiums being paid to the company.
There are many different types of insurance. There are the traditional policies that most people are familiar with such as life, health, car, home, and fire. There are also policies for such things as travel, boats, motorcycle, and renters insurance. There are even policies for electronics such as cell phones and laptop computers.
Regardless of what the item is that is being insured the concept still works the same. You the customer make monthly, quarterly or annual premium payments in exchange for a guaranteed amount of coverage. In the event that something happens that affects the insured item the policy may cover the damage or loss. This may depend on the circumstances that have contributed to the damage or loss of this situation.
Most policies are controlled by stipulations that pertain to the amount of coverage and the terms of the coverage. In the case of a situation that affects the insured property the policy holder contacts the issuing company and files a claim. The company then takes into consideration all of the circumstances behind the claim and determine if there is a claim that merits payment. A payment will be paid to the policy holder if the company determines that there is a legitimate claim.
Some types of policies only cover part of a claim; the remainder is to be paid by the insured. This payment by the customer is referred to as the deductible. Often the deductible amount must be paid before the company will issue a payment.
Some insurable items actually have various types of policies that pertain to them, such as auto insurance. Auto policies contain various sections that pertain to payment; these sections include liability, comprehensive and collision. The liability section pertains to the minimum amount that will be paid in the event of a claim pertaining to an accident.
Life insurance is another type that may offer different aspects of coverage. With life policies nothing is paid to the insured, but in the case of their death their beneficiaries receive payment. There are several different types of life policies; the structure of each type varies as does the monthly payment and the payment in the case of death of the insured.
Regardless of the type of policy the company will examine all claims and if they find that a claim has been filed unjustly there may be criminal charges against the policy holder. These individuals will also be denied payment and will be stopped from doing further business with the company. - 29971
There are many different types of insurance. There are the traditional policies that most people are familiar with such as life, health, car, home, and fire. There are also policies for such things as travel, boats, motorcycle, and renters insurance. There are even policies for electronics such as cell phones and laptop computers.
Regardless of what the item is that is being insured the concept still works the same. You the customer make monthly, quarterly or annual premium payments in exchange for a guaranteed amount of coverage. In the event that something happens that affects the insured item the policy may cover the damage or loss. This may depend on the circumstances that have contributed to the damage or loss of this situation.
Most policies are controlled by stipulations that pertain to the amount of coverage and the terms of the coverage. In the case of a situation that affects the insured property the policy holder contacts the issuing company and files a claim. The company then takes into consideration all of the circumstances behind the claim and determine if there is a claim that merits payment. A payment will be paid to the policy holder if the company determines that there is a legitimate claim.
Some types of policies only cover part of a claim; the remainder is to be paid by the insured. This payment by the customer is referred to as the deductible. Often the deductible amount must be paid before the company will issue a payment.
Some insurable items actually have various types of policies that pertain to them, such as auto insurance. Auto policies contain various sections that pertain to payment; these sections include liability, comprehensive and collision. The liability section pertains to the minimum amount that will be paid in the event of a claim pertaining to an accident.
Life insurance is another type that may offer different aspects of coverage. With life policies nothing is paid to the insured, but in the case of their death their beneficiaries receive payment. There are several different types of life policies; the structure of each type varies as does the monthly payment and the payment in the case of death of the insured.
Regardless of the type of policy the company will examine all claims and if they find that a claim has been filed unjustly there may be criminal charges against the policy holder. These individuals will also be denied payment and will be stopped from doing further business with the company. - 29971
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The full definition of insurance is an arrangement between insurance companies and a customer, by which the company provides the customer with protection against loss or damage such as theft, or death, in exchange for the payment of a monthly premium by the customer.
