Insurance

Losses must be uncertain. The rate of losses must be relatively predictable: In order to set premiums (prices) insurers must be able to estimate them accurately. This is done using the Law of Large Numbers which states that: The larger … Read More

Insurance fraud or false insurance claims are insurance claims filed with the intent to defraud an insurance provider. In the United States insurance fraud is estimated to cost US$875 per person per year with The Coalition Against Insurance Fraud estimating … Read More

A loan is a long-term financial debt, while debt in the medium and short term are usually called “credits”. A loan is a debt that has to be returned respecting specified stages (funds provided under contractual arrangements with the exception … Read More

A property or liability insurance policy is a “personal contract,” a “conditional contract,” a “unilateral contract,” a “contract of adhesion,” a “contract of indemnity,” and a contract which requires that the person insured have an insurable interest at the time … Read More

Accidental death and dismemberment insurance coverage (also called AD&D) covers death or dismemberment as a result of an accident. In constrast to life insurance coverage, AD&D generally would not pay survivor benefits in the case of death by illness. AD&D … Read More

The Insurance Market Overview for Central and Eastern Europe Ensight Management Consulting presents the results of the insurance market study in Central and Eastern Europe and Romania with complete data for 2011. The analysis is based upon data from CSA, … Read More

Insurance, in law and economics, is a type of risk management mainly utilized to hedge against the risk of possible monetary loss. Insurance is defined because the equitable transfer from the risk of a possible loss, from 1 entity to … Read More

Indemnity is really a legal exemption in the penalties or liabilities incurred by any course of action. For instance, following wars, the losers have occasionally been needed to spend indemnities. An insurance coverage payout is usually known as an indemnity, … Read More

Health insuranceis a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick due to covered causes, or due to accidents. The insurer may be a private organization or a government agency. … Read More

General insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurancetypically comprises any insurance that is not determined to be life insurance, and is called property and casualty insurance in … Read More

Earthquake insurance coverage is actually a form of property insurance that pays the policyholder within the event of an earthquake that causes harm towards the home. Most ordinary homeowners insurance coverage policies do not cover earthquake damage. Most earthquake insurance … Read More

Death spiral is a term used to describe an insurance plan whose costs are rapidly increasing as a result of changes in the covered population. It is the result of adverse selection in insurance policies where lower risk policy holders … Read More