Insurance is a kind of security against loss. In the language of law and economics, is a form of risk management. In a simple word it is a protection against future loss which person got if he is Insured. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Insurer is the company that sells the insurance. The insurance company is known as the "insurer"; the person who holds the policy is known as the "insured".That Company promise to reimbursement in the case of loss.
What is an insurance policy : An insurance policy is a contract that establishes a binding legal relationship that is regulated by both the common law and legislation. It is a kind of written aggrement between a person and the insurer company for that period of time which is insured by the person.
Types of insurance companies : Insurance companies may be classified as
- Life insurance companies: These are the companies, which sell life insurance, annuities and pensions policies.
- Non-life or general insurance companies: · These companies, which sell other types of insurance. General insurance companies can be further divided into these sub categories.:
- Standard Lines
- Excess Lines
No comments:
Post a Comment