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Insurance - All The Basics
What is insurance? Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party?s financial loss resulting from a specified event. Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy. History Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. Types of Insurance Insurance generally covers situations involving pure risk ? that is, situations in which only losses can occur. Such situations include fire, floods and accidents. People also buy insurance to cover unusual types of financial losses like, a dancer might insure her legs against injury. There are mainly three types of insurance policies sold: 1. Life Insurance A life insurance policy provides that the insurance company will pay a certain amount when the person dies. This may be paid in a lump sum or in installments to the beneficiary [people named by the policyholder to receive the death benefit]. Some types of life insurance policies also enable policyholders to save money. Such policies have a cash value. A policyholder may borrow money against the cash value or surrender the policy for its cash value. Annuities These are savings plans sold by insurance companies to provide a fixed and regular retirement income. If the annuitant [owner of the annuity] dies before receiving the guaranteed number of payments, the insurance company must continue the payments to the beneficiary. Dividends Some insurance policies refund part of the premiums in the form of dividends. Such policies are called participating policies. An insurance company pays dividends if the money it collected in premiums exceeds the amount needed to pay benefits and administrative costs. Dividends may also include a share of the profits the company earned on investments made with premium funds. Dividends are most commonly paid on life insurance. 2. Private Health Insurance Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The rising cost of medical care has increased the need for adequate health insurance. You could suffer a major financial hardship without such coverage, especially in case of a serious illness or accident. Dental insurance is one of the fastest-growing types of health insurance. It helps pay for a wide variety of dental services. 3. Property & Liability Insurance Individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if a policyholder?s possessions are damaged, destroyed, or lost as a result of perils. Liability insurance protects individuals and businesses against possible financial losses if their actions result in bodily injury to others or in harm to property owned by others. The main types of individual coverage are: ? Homeowners Insurance This provides protection against losses from damages to an owner?s home and its contents. ? Automobile Insurance This is the most widely purchased and most important kinds of insurance. Drivers are legally responsible for any costs arising from accidents they cause. This insurance protects a policyholder against financial losses from accidents. Financial viability of Insurance Companies Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses). How Insurance Is Sold Most insurance companies sell policies through agents. Exclusive agents are employees of an insurance company who sell only that company?s policies. Independent agents sell policies for several companies. David Dugan is a contributing author to the insurance information site <a href="http://insurance.divinfo.com/">http://insurance.divinfo.com/</a>, a site that has information on auto, homeowners, life, pet and all kinds of insurance as well as the retirement site <a href="http://retirement.divinfo.com">http://retirement.divinfo.com</a>.
Source: www.ArticlePros.com

Professional Indemnity Insurance Claims
Professional indemnity insurance claims are not, as is commonly assumed, solely the experience of those who churn out work containing technical deficiencies They extend to cover situations in which consultants probably did nothing wrong but the client made a loss and decided to attack all potential sources of compensation; or the contractor made errors and subsequently went into liquidation; or there were so many parties involved, all with different versions of events, that criticism of the consultant was an inevitability . .All consultants, therefore, need to protect their assets against claims This is partly achieved by maintaining professional indemnity insurance cover but only if the terms of coverage are suitable and the limit of indemnity is adequate . .All practices, even those with clean claims records, should review their limit of indemnity as a matter of course at each renewal and increase it if appropriate The incidence of claims exceeding the limit of indemnity is already much higher than it used to be and is a trend which is set to continue Consultants whose liability exceeds their insurance have to fund the balance out of their own assets to the extent they can . .Effective risk management is as much about preventing spurious claims as it is about avoiding genuine errors . .The task of any professional person is not solely to produce sound advice based on his technical knowledge and experience but also to communicate it effectively - good communication is what makes the difference between producing a solution and providing a service . .Sometimes the consultant has to be prepared to go beyond communicating advice required of him under his appointment, as disputes may arise through others in the team failing to communicate as effectively as they might Whilst it is true that consultants create problems by exceeding their brief, in practice there are circumstances in which doing so is the best way to protect against spurious allegations if the preventable is allowed to deteriorate into the inevitable . .It should be possible to communicate the relevant message in such a way as to achieve this whilst not materially affecting the consultant’s exposure to liability . .A carefully worded letter might flag a potential issue to the client and merely suggest, with appropriate disclaimers and qualifications, that the client take further advice - which the consultant himself might provide for an additional fee, or which the client might procure from elsewhere Such cases may constitute circumstances which might give rise to a professional indemnity insurance claim and which should therefore be notified to your insurers Either way, our specialist claims brokers are available to offer advice .
Source: www.rsstnx.com

Why Do We Need Insurance Quotes
why do we need any kind of insurance? Well Wheather your getting a home, bussiness, car, Auto, life, finance, or Health Insurance You have to get A Quote first The Quote will be so you will know if you were approve for the insurance policy you apply for, also to let you know how much you will pay for it . .It is easy to apply for your insurance quote online, couse its fast, easy and it wont take all your time driving everywhere to get the right company Also it will avoid being on hold for long time if you decide to do it by phone You can also purchase your insurance policy online and even print it out in the comphort of your home or bussiness . .Some people would prefer to talk to an agent face to face, they dont trust the internet with there private information and tho its true you cant trust the internet 100% with your information We would say that when you go to get information and if you decide to get a policy online your information will be safe As long as you go to a trusted site Getting a Quote online will save you time, money This you can do in less then an hour When if you go to a company’s office you will have to wait your turn fill out the pappers and wait some more By phone you also have to wait, since they put you on hold like forever, after making you dial so much numbers so you can get to an agent also if your in the middle of giving out an important information you run the chance that your phone my cut off and then you might have to start all over again with a different agent . . .This is why most people chooses to do there quotes and insurance policy online its fast convinient, you are not put in holdd, You do not havt to look at the agents eyes and you dont waste money in gas Getting an insurane is very important for your family It keeps them and you safe .
Source: www.rsstnx.com