Posts Tagged Insurance World
All About Insurance and How to Find Cheap Insurance
Posted by admin in All about Insurance on September 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: Insurance WorldRelated posts
All About Insurance Fraud
Posted by admin in All about Insurance on August 19, 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 »
Tags: All about Insurance, Insurance WorldRelated posts
Do You Actually Understand Anything in Your Insurance Contract?
Posted by admin in All about Insurance on January 22, 2010
It’s a funny thing – we spend thousands of dollars on our insurance policies every year; and yet, when the policy document comes in the mail, we take one look at the masses of fine print, roll our eyes, and do nothing more with it than file it away. For something that performs such an important function for us, shouldn’t we pay little attention? Certainly, your insurance contract is full of jargon and difficult technical terminology that makes the going difficult. But your insurance advisor should be there for you to help you understand whatever you need to know. To get you started, let’s look at the preliminaries of how to understand an insurance contract.
Some of the terminology in an insurance contract is pretty simple – once you get past the complicated-sounding words that they use for no reason. For instance, in the opening paragraphs of your contract, they talk about an offer, an acceptance and consideration. These are pretty simple – the offer is the form that you fill in to apply for an insurance policy, the acceptance is when they actually accept your form and sell you insurance for the premium they determine. The consideration is the premium you pay every month.
Technically, an insurance contract is called an indemnity contract – that means that they promise to indemnify you or make good your loss when it occurs. Most times, an insurance contract promises to return you to the financial state you were in before the loss occurred. But there are often many additional complexities and wrinkles to this kind of promise. For instance, sometimes, you may find that you can’t afford to insure your car or your house for its full value. If your house is worth $100,000, and you find that you can only afford insurance for $75,000, they call this underinsurance. Read the rest of this entry »
Tags: All about Insurance, Insurance Contract, Insurance World