Posts Tagged ‘Insurance Term’
Traditional Know Your Insurance
September 25th, 2011 | 
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In the Traditional Insurance, divided several types of insurance, this insurance usually have long been used by consumers.
Traditional insurance consists of:
1. TERM
2. Wholelife
3. Endowment
TERM
- You never know about or Motor Car Insurance? Or maybe health insurance? That type of term insurance is usually purchased by many people, because the premium payment is cheap and getting great benefits. In other words, pay less, failure by many, but if that year is not used for insurance claims and does not occur, then the money we deposited will be scorched. From these facts, we can see, there is no savings element in this type of insurance, so call us to buy our security guarantee within a year or a specific term. We all pay the same as travel insurance, flight time will be charged a sum of money, after getting off the plane safely, the contract is completed. Because of the premium payment period is not specified, and then every year, the premiums will increase with increasing age of the insured.
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Posted in Insurance News | 
Tags: Family Insurance, General Insurance Tips, Insurance Term, Traditional Insurance | 
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Insurance and Risk Assessment
“Insurance Industry should continue to develop products that are wearing the right price at the driver who just started, to provide incentives for them to gain experience of driving, and saw an advantage in experience based on the premium they paid for” (Greenaway, 2004, 4:11)
General insurance also encourages the formation of a good compensation system. Compensation system (which is pay damages to the affected brands through carelessness of other parties) is difficult to operate effectively without the liability insurance market is healthy. Without the presence of liability insurance, the court may impose penalty payments for property damage. This allows each person or organization involved in activities that are dangerous to operate in a minimum level of assets (judgment proof) to avoid paying damages to third parties.
As a result, the parties can not obtain compensation (and therefore had to snitch on a system that applies), while the amount paid will depend on the person’s ability, not on the magnitude of losses suffered by other parties. Further, the person’s incentive to reduce the risk largely disappeared. Conversely, the efficient treatment of liability insurance not only provides resources to compensate the injured party and the incentive to maintain, but also lower costs than schemes based on third-party payment systems and regulations.
Relationship between Insurance and Indemnification Agreement
Parson (2003) emphasized the strong relationship between liability insurance and indemnity law by contending that the pattern of legal obligation, as the court’s decision, determined by local practices liability insurance market and the availability of payment. More specifically, he states that “no doubt that the general availability of insurance has a role in building a legal (liability). And sometimes the legal liability is limited to the value indicating the payment of insurance liabilities ”
To carry out the functions of investment, insurance companies build the assets after receiving the premium paid in advance. By investing in a productive, insurers can generate income level that allows them to pay a lower premium rate. The insurance company can even improve efficiency in the financial system with a financial liaison party, where they reduce transaction costs that unite storage and borrowers. The insurance company also generates liquidity by using premium income to provide long-term capital. The insurance company also facilitates economies of scale in investment. By collecting large numbers of thousands of policyholders, insurers can achieve the financing needs of large projects, thereby increasing the set of possible investment projects and encouraging economic efficiency.
Finally, the role of insurers in improving the economy emerged from its ability to provide risk management advice. Read the rest of this entry »