The first thing, probably the most important thing, an insurance company have to do in underwriting process is determining the insurance risk profile. Insurance companies make "groups" or categorize individuals that have similar characteristics. These groups or category will be used to determine the risk when the company writing a new policy and determine the premium that will be charged for insured's coverage. It is true that no individuals are having exact same characteristics, but...
Standard auto insurance means that auto insurance company considered the drivers to fall into an average risk profile. The company charged the premium based on actuarial information compiled from similar drivers in the past. Insurance company need to be able to estimate the risk in underwriting new policy, or else it can break or make the company. It can be profitable or they can wind up paying out more benefits that receiving premiums if they...
Unlike life insurance, permanent life insurance do not have expired time and also combine death benefit with savings portion. It accumulates a cash value, the policy owner can withdrawing money, borrowing cash value or cancelling the policy and receive the surrender value. The insurer usually apply waiting period after policy purchase to accumulate sufficient cash value when insured want to borrow saving portions of the permanent insurance. Permanent life insurance policy holder get tax-deferred benefit...
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (source: Wikipedia). Life insurance means to provide financial security for family after the policy holder die. In some cases, funeral expenses can be included in insurance benefits. Cause of death such as terminal illness or...
Deductibles, premiums and limits are the most frequently terms that appear in insurance policy. These concepts determine your payment for your insurance and how much you receive after a covered loss. You need to understand the meaning of each terms. Deductible Deductible is the amount you pay out of pocket before insurer pay for the expense. The amount of coverage depends on the limit you choose. For example, you have $400 deductible and have $10,000...
There are two components in vehicle liability insurance, bodily injury coverage and property damage coverage. These components always included together. In US, some states don't require the vehicle owner to carry car insurance, they may be paid to the state instead, such as Virginia. Meanwhile, New Hampshire and Mississippi offers the vehicle owners to post cash bonds. Insurance premium is usually determined by the type of covered vehicle, driver's age and gender, driving history, and...
Comprehensive coverage is a type of auto insurance that covers damage on your car that is not caused by collision. You might think that comprehensive means full coverage but it's not true. Theft, vandalism, fire, natural disasters, animal strike, civil disturbance and falling objects are example items covered by comprehensive insurance. As long as you didn't collide your car with another car, comprehensive coverage will pay to repair the damage. It seems like "not-so-important" insurance,...
Insurance claim adjusters, claim specialist, claim representatives or independent claims analyst are basically same (they're just came with different title). They all do the same job. If you file a claim, they will contact you, gather the information about the accident, investigate and so on. Keep in mind that insurance claim adjusters work for the insurance company not the insured. They will try to settle the claim as soon and inexpensively as possible. Therefore, what...
Nobody wants to involved in car accident and sometimes filing insurance claim could be exhausting and involving long process. According your car insurance type, you need to file a claim to your insurance company when your car collide with another vehicle, being vandalism victim, stolen or damaged from weather, animal or fire. Make sure you prepare your personal data, such as policy number, your policy's duration, date and time of incident, and so on. Your...
You are young, under 25 years old. And have sports car. Perfect? Not yet. No matter how good you drive, protect your car (and your self, of course) by purchasing performance car insurance. But isn't it expensive? Yes, it is. Performance car insurance is commonly more expensive than standard vehicle insurance. And it will be more expensive if the insured is under 25 years old because they tend to be riskier to insure. But it...
If you own business or a professional, you might want to know about indemnity insurance. And many people probably never heard about this type of insurance before or unfamiliar with this term. So, what is indemnity insurance? Indemnity insurance is a protection type of insurance for professionals and business owners for their particular loss or fault. The indemnity itself means an obligation by a person (indemnitor) to provide compensation for a particular loss suffered by...
