Posts Tagged All about Insurance
All About Insurance Fraud
Posted by admin in All about Insurance on October 16, 2010
Ever since insurance was invented, so was insurance fraud. There are many types of fraud, from life insurance fraud to auto fraud. This article will provide a general overview, while discussing the impact of fraud on society.
Most of the time, when someone commits fraud, it is for financial gain. Because of the nature of insurance policies, they are rife with potentials for exploitation. Commonly, insurance policies are exploited by individuals claiming more loss than actually occurred, or inflating the value of the item lost.
Insurance fraud is generally divided into two classifications – soft fraud or hard fraud. Soft fraud is the more common of the two, and is also called opportunistic fraud. This type of fraud occurs when an insured party inflates an already legitimate claim. Soft fraud, for example, happens when an insured individual is involved in a car accident and claims that more damage was done to the vehicle than is true. Soft fraud can happen at the start of a new insurance policy, when an individual purchasing a policy misrepresents their actually situation in order to get a lower premium. An example of this is if someone is buying a car insurance policy but lies about the number of miles on the vehicle to obtain a lower premium Read the rest of this entry »
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All About Insurance and How to Find Cheap Insurance
Posted by admin in All about Insurance on October 10, 2010
Insurance is very important. The way that insurance works is that a whole lot of people pay a small amount of money into an insurance pool. This pool of money will protect these people against some sort of risk, such as the risk of your car getting stolen. Because many people pay money into the pool, the pool becomes rich and full of money. Then if one person who has paid money into the pool gets their car stolen, then the insurance company will give them money out of the pool. The insurance pool can pay out much more money than that individual person had by himself.
The only reason that insurance works is because the problem that is the risk isn’t so big that it happens to everyone. Just think if everyone who invested money into the insurance pool had a car that got stolen, the insurance company wouldn’t be able to pay everyone out lots of money. Insurance companies spend huge amounts of money paying risk analyzers to work out how much risk is in place. They also pay an effective legal team to stipulate good terms and conditions so that clients don’t take advantage of the insurance company by making false claims. Read the rest of this entry »
Tags: All about Insurance, Insurance WorldRelated posts
Things To Know About Insurance Policies
Posted by admin in All about Insurance on October 5, 2010
There are a lot of things that people believe about insurance that is just not true. You need to understand what is a statement of fact and what is a myth as far as insurance is concerned. Below are a few myths that are widely believed by people.
1.It is only the bread winner in the home that needs life insurance. It is important to buy insurance for anyone whose loss of income would affect the household. Some people neglect the importance of the stay at home mom or dad. Research has shown that the cost of housekeeping, child care, school runs and other household chores is commensurate to the pay for a full time job. Read the rest of this entry »
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