tag:blogger.com,1999:blog-29428856941750158212024-02-08T01:52:17.238-08:00Easy InsuranceAll About InsuranceAdminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2942885694175015821.post-90853923688156698102011-04-09T08:21:00.000-07:002011-04-09T08:22:57.327-07:00Health insurance in the United States<div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;"><a href="http://mybeautyinsurance.blogspot.com/2011/04/health-insurance-in-united-states.html">Accident insurance</a> was first offered in the United States by the Franklin Health Assurance Company of Massachusetts. This firm, founded in 1850, offered insurance against injuries arising from railroad and steamboat accidents. Sixty organizations were offering accident insurance in the US by 1866, but the industry consolidated rapidly soon thereafter. In 1887, the African American workers in Muchakinock, Iowa, a company town, organized a mutual protection society. Members paid fifty cents a month or $1 per family for health insurance and burial expenses. In the 1890s, various health plans became more common. Disability insurance group disability policy was issued in 1911.<br />
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Commercial insurance companies began offering accident and sickness insurance (disability insurance) as early as the mid-19th century. Hospital and medical expense policies were introduced during the first half of the 20th century. The first group medical plan was purchased from The Equitable Life Assurance Society of the United States by the General Tire & Rubber Company in 1934. Before the development of medical expense insurance, patients were expected to pay all other health care costs out of their own pockets, under what is known as the fee-for-service business model. During the middle to late 20th century, traditional disability insurance evolved into modern health insurance programs. Today, most comprehensive private health insurance programs cover the cost of routine, preventive, and emergency health care procedures, and also most prescription drugs, but this was not always the case.<br />
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During the 1920s, individual hospitals began offering services to individuals on a pre-paid basis. The first group pre-payment plan was created at the Baylor University Hospital in Dallas, Texas. This concept became popular among hospitals during the Depression, when they were facing declining revenues. The Baylor plan was a forerunner of later Blue Cross plans. Physician associations began offering pre-paid surgical/medical benefits in the late 1930s Blue Shield plans. Blue Cross and Blue Shield plans were non-profit organizations sponsored by local hospitals (Blue Cross) or physician groups (Blue Shield). As originally structured, Blue Cross and Blue Shield plans provided benefits in the form of services rendered by participating hospitals and physicians ("service benefits") rather than reimbursements or payments to the policyholder.<br />
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Hospital and medical expense policies were introduced during the first half of the 20th century. During the 1920s, individual hospitals began offering services to individuals on a pre-paid basis, eventually leading to the development of Blue Cross organizations. The Ross-Loos Clinic, founded in Los Angeles in 1929, is generally considered to have been the first health maintenance organization (HMO). Henry J. Kaiser organized hospitals and clinics to provide pre-paid health benefits to his shipyard workers during World War II. This became the basis for Kaiser Permanente HMO. Most early HMOs were non-profit organizations. The development of HMOs was encouraged by the passage of the Health Maintenance Organization Act of 1973. The first employer-sponsored hospitalization plan was created by teachers in Dallas, Texas in 1929.[23] Because the plan only covered members' expenses at a single hospital, it is also the forerunner of today's health maintenance organizations (HMOs).<br />
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Employer-sponsored health insurance plans dramatically expanded as a result of wage controls during World War II. The labor market was tight because of the increased demand for goods and decreased supply of workers during the war. Federally imposed wage and price controls prohibited manufacturers and other employers raising wages high enough to attract sufficient workers. When the War Labor Board declared that fringe benefits, such as sick leave and health insurance, did not count as wages for the purpose of wage controls, employers responded with significantly increased benefits.<br />
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Employer-sponsored health insurance was considered taxable income until 1954.<br />
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In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system for insurance similar to that which oversees state banks and national banks.</span></div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com2tag:blogger.com,1999:blog-2942885694175015821.post-28890015165363693332011-04-03T20:30:00.000-07:002011-04-03T20:30:40.205-07:00Health care in France<div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;">The national system of health insurance was instituted in 1945, just after the end of the Second World War. It was a compromise between Gaullist and Communist representatives in the French parliament. The Conservative Gaullists were opposed to a state-run healthcare system, while the Communists were supportive of a complete nationalisation of health care along a British Beveridge model.<br />
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The resulting programme is profession-based: all people working are required to pay a portion of their income to a not-for-profit health insurance fund, which mutualises the risk of illness, and which reimburses medical expenses at varying rates. Children and spouses of insured people are eligible for benefits, as well. Each fund is free to manage its own budget, and used to reimburse medical expenses at the rate it saw fit, however following a number of reforms in recent years, the majority of funds provide the same level of reimbursment and benefits.<br />
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The government has two responsibilities in this system.<br />
</span></div><ul style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><li><span style="font-size: small;">The first government responsibility is the fixing of the rate at which medical expenses should be negotiated, and it does so in two ways: The Ministry of Health directly negotiates prices of medicine with the manufacturers, based on the average price of sale observed in neighboring countries. A board of doctors and experts decides if the medicine provides a valuable enough medical benefit to be reimbursed (note that most medicine is reimbursed, including homeopathy). In parallel, the government fixes the reimbursment rate for medical services: this means that a doctor is free to charge the fee that he wishes for a consultation or an examination, but the social security system will only reimburse it at a pre-set rate. These tariffs are set annually through negotiation with doctors' representative organisations.</span></li>
<li><span style="font-size: small;"> The second government responsibility is oversight of the health-insurance funds, to ensure that they are correctly managing the sums they receive, and to ensure oversight of the public hospital network.</span></li>
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Today, this system is more-or-less intact. All citizens and legal foreign residents of France are covered by one of these mandatory programs, which continue to be funded by worker participation. However, since 1945, a number of major changes have been introduced. Firstly, the different health-care funds (there are five: General, Independent, Agricultural, Student, Public Servants) now all reimburse at the same rate. Secondly, since 2000, the government now provides health care to those who are not covered by a mandatory regime (those who have never worked and who are not students, meaning the very rich or the very poor). This regime, unlike the worker-financed ones, is financed via general taxation and reimburses at a higher rate than the profession-based system for those who cannot afford to make up the difference. Finally, to counter the rise in health-care costs, the government has installed two plans, (in 2004 and 2006), which require insured people to declare a referring doctor in order to be fully reimbursed for specialist visits, and which installed a mandatory co-pay of 1 € (about $1.45) for a doctor visit, 0,50 € (about 80¢) for each box of medicine prescribed, and a fee of 16-18 € ($20–25) per day for hospital stays and for expensive procedures.<br />
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An important element of the French insurance system is solidarity: the more ill a person becomes, the less the person pays. This means that for people with serious or chronic illnesses, the insurance system reimburses them 100% of expenses, and waives their co-pay charges.<br />
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Finally, for fees that the mandatory system does not cover, there is a large range of private complementary insurance plans available. The market for these programs is very competitive, and often subsidised by the employer, which means that premiums are usually modest. 85% of French people benefit from complementary private health insurance.</span></div><div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;"><br />
</span></div><div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;"><span style="font-size: xx-small;"><a href="http://en.wikipedia.org/wiki/Health_care_in_France">http://en.wikipedia.org/wiki/Health_care_in_France</a></span></span></div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com1tag:blogger.com,1999:blog-2942885694175015821.post-55782921607101323562011-04-03T20:26:00.000-07:002011-04-03T20:27:21.498-07:00Health care in Canada<div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;">Health care is mainly a constitutional, provincial government responsibility in Canada (the main exceptions being federal government responsibility for services provided to aboriginal peoples covered by treaties, the Royal Canadian Mounted Police, the armed forces, and members of parliament). Consequently each province administers its own health insurance program. The federal government influences health insurance by virtue of its fiscal powers - it transfers cash and tax points to the provinces to help cover the costs of the universal health insurance programs. Under the Canada Health Act, the federal government mandates and enforces the requirement that all people have free access to what are termed "medically necessary services," defined primarily as care delivered by physicians or in hospitals, and the nursing component of long term residential care. </span></div><div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><br />
</div><div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;">If provinces allow doctors or institutions to charge patients for medically necessary services, the federal government reduces its payments to the provinces by the amount of the prohibited charges. Collectively, the public provincial health insurance systems in Canada are frequently referred to as Medicare. This public insurance is tax-funded out of general government revenues, although British Columbia and Ontario levy a mandatory premium with flat rates for individuals and families to generate additional revenues - in essence a surtax. Private health insurance is allowed, but in six provincial governments only for services that the public health plans do not cover, for example, semi-private or private rooms in hospitals and prescription drug plans. Four provinces allow insurance for services also mandated by the Canada Health Act, but in practice there is no market for it. All Canadians are free to use private insurance for elective medical services such as laser vision correction surgery, cosmetic surgery, and other non-basic medical procedures. Some 65% of Canadians have some form of supplementary private health insurance; many of them receive it through their employers. Private-sector services not paid for by the government account for nearly 30 percent of total health care spending.<br />
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In 2005, the Supreme Court of Canada ruled, in Chaoulli v. Quebec, that the province's prohibition on private insurance for health care already insured by the provincial plan violated the Quebec Charter of Rights and Freedoms, and in particular the sections dealing with the right to life and security, if there were unacceptably long wait times for treatment, as was alleged in this case. The ruling has not changed the overall pattern of health insurance across Canada but has spurred on attempts to tackle the core issues of supply and demand and the impact of wait times.<br />
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Health care in Canada is delivered through a publicly-funded health care system, which is mostly free at the point of use and has most services provided by private entities. It is guided by the provisions of the Canada Health Act. The government assures the quality of care through federal standards. The government does not participate in day-to-day care or collect any information about an individual's health, which remains confidential between a person and his or her physician. Canada's provincially-based Medicare systems are cost-effective partly because of their administrative simplicity. In each province each doctor handles the insurance claim against the provincial insurer. There is no need for the person who accesses health care to be involved in billing and reclaim. Private insurance is only a minimal part of the overall health care system. Competitive practices such as advertising are kept to a minimum, thus maximizing the percentage of revenues that go directly towards care. In general, costs are paid through funding from income taxes, although three provinces also impose a fixed monthly premium which may be waived or reduced for those on low incomes. There are no deductibles on basic health care and co-pays are extremely low or non-existent (supplemental insurance such as Fair Pharmacare may have deductibles, depending on income).<br />
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A health card is issued by the Provincial Ministry of Health to each individual who enrolls for the program and everyone receives the same level of care. There is no need for a variety of plans because virtually all essential basic care is covered, including maternity and infertility problems. Depending on the province, dental and vision care may not be covered but are often insured by employers through private companies. In some provinces, private supplemental plans are available for those who desire private rooms if they are hospitalized. Cosmetic surgery and some forms of elective surgery are not considered essential care and are generally not covered. These can be paid out-of-pocket or through private insurers. Health coverage is not affected by loss or change of jobs, as long as premiums are up to date, and there are no lifetime limits or exclusions for pre-existing conditions.<br />
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Pharmaceutical medications are covered by public funds for the elderly or indigent, or through employment-based private insurance. Drug prices are negotiated with suppliers by the federal government to control costs. Family physicians are chosen by individuals. If a patient wishes to see a specialist or is counseled to see a specialist, a referral can be made by a GP. Preventive care and early detection are considered important and yearly checkups are encouraged. Early detection not only extends life expectancy and quality of life, but cuts down overall costs. Those suspected of abusing the system by over-frequent or frivolous use can be tracked by the doctor through the ID on their health insurance card and may have to wait longer than those with more urgent needs.</span><br />
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<span style="font-size: small;"><span style="font-size: xx-small;"><a href="http://en.wikipedia.org/wiki/Health_care_in_Canada">http://en.wikipedia.org/wiki/Health_care_in_Canada </a></span></span></div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com0tag:blogger.com,1999:blog-2942885694175015821.post-77209993179785466762011-04-03T07:29:00.000-07:002011-04-03T07:29:43.523-07:00Health care in Australia<div style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><span style="font-size: small;">The public health system is called Medicare. It ensures free universal access to hospital treatment and subsidised out-of-hospital medical treatment. It is funded by a 1.5% tax levy on all taxpayers, an extra 1% levy on high income earners, as well as general revenue.<br />
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The private health system is funded by a number of private health insurance organisations. The largest of these is Medibank Private, which is government-owned, but operates as a government business enterprise under the same regulatory regime as all other registered private health funds. The Coalition Howard government had announced that Medibank would be privatised if it won the 2007 election, however they were defeated by the Australian Labor Party under Kevin Rudd which had already pledged that it would remain in government ownership.<br />
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Some private health insurers are 'for profit' enterprises such as Australian Unity, and some are non-profit organizations such as the Health Insurance Fund of Australia (HIF). Some have membership restricted to particular groups, but the majority have open membership. Membership to most health funds is now also available through comparison websites like moneytime, iSelect or the decision assistance sites HelpMeChoose and the latest entry YouCompare. These comparison sites operate on a commission-basis by agreement with their participating health funds.<br />
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Most aspects of private health insurance in Australia are regulated by the Private Health Insurance Act 2007. Complaints and reporting of the private health industry is carried out by an independent government agency, the Private Health Insurance Ombudsman. The ombudsman publishes an annual report that outlines the number and nature of complaints per health fund compared to their market share. The private health system in Australia operates on a "community rating" basis, whereby premiums do not vary solely because of a person's previous medical history, current state of health, or (generally speaking) their age (but see Lifetime Health Cover below). Balancing this are waiting periods, in particular for pre-existing conditions (usually referred to within the industry as PEA, which stands for "pre-existing ailment"). Funds are entitled to impose a waiting period of up to 12 months on benefits for any medical condition the signs and symptoms of which existed during the six months ending on the day the person first took out insurance. They are also entitled to impose a 12-month waiting period for benefits for treatment relating to an obstetric condition, and a 2-month waiting period for all other benefits when a person first takes out private insurance. Funds have the discretion to reduce or remove such waiting periods in individual cases. They are also free not to impose them to begin with, but this would place such a fund at risk of "adverse selection", attracting a disproportionate number of members from other funds, or from the pool of intending members who might otherwise have joined other funds. It would also attract people with existing medical conditions, who might not otherwise have taken out insurance at all because of the denial of benefits for 12 months due to the PEA Rule. The benefits paid out for these conditions would create pressure on premiums for all the fund's members, causing some to drop their membership, which would lead to further rises in premiums, and a vicious cycle of higher premiums-leaving members would ensue.<br />
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There are a number of other matters about which funds are not permitted to discriminate between members in terms of premiums, benefits, or membership - they include racial origin, religion, sex, sexual orientation, nature of employment, and leisure activities. Premiums for a fund's product that is sold in more than one state can vary from state to state, but not within the same state.<br />
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The Australian government has introduced a number of incentives to encourage adults to take out private hospital insurance. These include:<br />
</span></div><ul style="font-family: Georgia,"Times New Roman",serif; text-align: justify;"><li><span style="font-size: small;">Lifetime Health Cover: If a person has not taken out private hospital cover by the 1st July after their 31st birthday, then when (and if) they do so after this time, their premiums must include a loading of 2% per annum for each year they were without hospital cover. Thus, a person taking out private cover for the first time at age 40 will pay a 20 per cent loading. The loading is removed after 10 years of continuous hospital cover. The loading applies only to premiums for hospital cover, not to ancillary (extras) cover.</span></li>
<li><span style="font-size: small;">Medicare Levy Surcharge: People whose taxable income is greater than a specified amount (currently $70,000 for singles and $140,000 for couples) and who do not have an adequate level of private hospital cover must pay a 1% surcharge on top of the standard 1.5% Medicare Levy. The rationale is that if the people in this income group are forced to pay more money one way or another, most would choose to purchase hospital insurance with it, with the possibility of a benefit in the event that they need private hospital treatment - rather than pay it in the form of extra tax as well as having to meet their own private hospital costs.</span></li>
<li><span style="font-size: small;">The Australian government announced in May 2008 that it proposes to increase the thresholds, to $100,000 for singles and $150,000 for families. These changes require legislative approval. A bill to change the law has been introduced but was not passed by the Senate. An amended version was passed on 16 October 2008. There have been criticisms that the changes will cause many people to drop their private health insurance, causing a further burden on the public hospital system, and a rise in premiums for those who stay with the private system. Other commentators believe the effect will be minimal.</span></li>
<li><span style="font-size: small;">Private Health Insurance Rebate: The government subsidises the premiums for all private health insurance cover, including hospital and ancillary (extras), by 30%, 35% or 40%, depending on age. The Rudd Government announced in May 2009 that as of July 2010, the Rebate would become means-tested, and offered on a sliding scale.</span></li>
</ul><div style="font-family: Verdana,sans-serif; text-align: justify;"><span style="font-size: small;"><span style="font-size: xx-small;"><span style="font-family: Georgia,"Times New Roman",serif;">http://en.wikipedia.org/wiki/Health_insurance</span></span></span></div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com0tag:blogger.com,1999:blog-2942885694175015821.post-27420342376577475042011-04-02T01:06:00.000-07:002011-04-02T01:06:59.762-07:00Health insurance<div style="font-family: Verdana,sans-serif; text-align: justify;">Health insurance is insurance against the risk of incurring medical expenses. By estimating the overall risk of health care expenses, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is available to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization such as a government agency, private business, or not-for-profit entity.<br />
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A health insurance policy is a contract between an insurance company and an individual or his sponsor (e.g. an employer). The contract can be renewable annually, monthly or be lifelong. The type and amount of health care costs that will be covered by the health insurance company are specified in advance, in a member contract or "Evidence of Coverage" booklet. The individual insured person's obligations may take several forms<br />
</div><ul style="font-family: Verdana,sans-serif; text-align: justify;"><li>Premium: The amount the policy-holder or his sponsor (e.g. an employer) pays to the health plan to purchase health coverage.</li>
<li>Deductible: The amount that the insured must pay out-of-pocket before the health insurer pays its share. For example, policy-holders might have to pay a $500 deductible per year, before any of their health care is covered by the health insurer. It may take several doctor's visits or prescription refills before the insured person reaches the deductible and the insurance company starts to pay for care.</li>
<li>Co-payment: The amount that the insured person must pay out of pocket before the health insurer pays for a particular visit or service. For example, an insured person might pay a $45 co-payment for a doctor's visit, or to obtain a prescription. A co-payment must be paid each time a particular service is obtained.</li>
<li>Coinsurance: Instead of, or in addition to, paying a fixed amount up front (a co-payment), the co-insurance is a percentage of the total cost that insured person may also pay. For example, the member might have to pay 20% of the cost of a surgery over and above a co-payment, while the insurance company pays the other 80%. If there is an upper limit on coinsurance, the policy-holder could end up owing very little, or a great deal, depending on the actual costs of the services they obtain.</li>
<li>Exclusions: Not all services are covered. The insured are generally expected to pay the full cost of non-covered services out of their own pockets.</li>
<li>Coverage limits: Some health insurance policies only pay for health care up to a certain dollar amount. The insured person may be expected to pay any charges in excess of the health plan's maximum payment for a specific service. In addition, some insurance company schemes have annual or lifetime coverage maximums. In these cases, the health plan will stop payment when they reach the benefit maximum, and the policy-holder must pay all remaining costs.</li>
<li>Out-of-pocket maximums: Similar to coverage limits, except that in this case, the insured person's payment obligation ends when they reach the out-of-pocket maximum, and health insurance pays all further covered costs. Out-of-pocket maximums can be limited to a specific benefit category (such as prescription drugs) or can apply to all coverage provided during a specific benefit year.</li>
<li>Capitation: An amount paid by an insurer to a health care provider, for which the provider agrees to treat all members of the insurer.</li>
<li>In-Network Provider: (U.S. term) A health care provider on a list of providers preselected by the insurer. The insurer will offer discounted coinsurance or co-payments, or additional benefits, to a plan member to see an in-network provider. Generally, providers in network are providers who have a contract with the insurer to accept rates further discounted from the "usual and customary" charges the insurer pays to out-of-network providers.</li>
<li>Prior Authorization: A certification or authorization that an insurer provides prior to medical service occurring. Obtaining an authorization means that the insurer is obligated to pay for the service, assuming it matches what was authorized. Many smaller, routine services do not require authorization.</li>
<li>Explanation of Benefits: A document that may be sent by an insurer to a patient explaining what was covered for a medical service, and how payment amount and patient responsibility amount were determined.</li>
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Prescription drug plans are a form of insurance offered through some employer benefit plans in the U.S., where the patient pays a copayment and the prescription drug insurance part or all of the balance for drugs covered in the formulary of the plan. Such plans are routinely part of national health insurance programs.<br />
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Some, if not most, health care providers in the United States will agree to bill the insurance company if patients are willing to sign an agreement that they will be responsible for the amount that the insurance company doesn't pay. The insurance company pays out of network providers according to "reasonable and customary" charges, which may be less than the provider's usual fee. The provider may also have a separate contract with the insurer to accept what amounts to a discounted rate or capitation to the provider's standard charges. It generally costs the patient less to use an in-network provider.<br />
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</div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com0tag:blogger.com,1999:blog-2942885694175015821.post-42191515724312890962011-04-01T23:51:00.000-07:002011-04-01T23:54:20.142-07:00What is Insurance?<div style="text-align: justify;"><span style="font-family:verdana;">Insurance is a term used to refer to the action, systems, or business where financial protection (or financial compensation) to life, property, health and others seek relief from the events that can not be expected that could happen such as death, loss , damage or illness, which involves the payment of premiums on a regular basis within a specific period in exchange for policies that ensure such protection.</span><br /><br /><span style="font-family:verdana;">The term "insured" usually refers to anything that get protection.</span><br /><br /><span style="font-family:verdana;">Insurers use actuarial science to calculate the risks they assume. Actuarial science uses mathematics, particularly statistics and probability, which can be used to cover risks to estimate the claim at a later date with reliable accuracy.</span><br /><br /><span style="font-family:verdana;">For example, many people buy insurance policies for housing and then they pay a premium to the insurance company. When you lose a protected place, the insurer must pay claims. For some of the insured, the insurance benefits they receive are far greater than the money they had paid to the insurer. Others may not make a claim. If it is averaged from all policies sold, the total claims paid out was lower than the total premiums paid to the insured, with the only difference is in cost and profit.</span><br /><br /><span style="font-family:verdana;">Insurance companies also get a return on investment. It is obtained from investing premiums received until they have to pay the claim. This money is called "float". Insurers can benefit or loss from price changes in the float and also interest rate or dividend on the float. In the United States, loss of property and death are recorded by insurance companies was U.S. $ 142.3 billion in five years ended in 2003. However, total profits in the same period was U.S. $ 68.4 billion, as a result of the float.</span><br /><br /><span style="font-family:verdana;">In the insurance world there are 6 basic principles that must be met, namely:</span><br /><br /><span style="font-family:verdana;">* Insurable interest right to insure, arising from a financial relationship, between the insured with the insured and legally recognized.</span><br /><br /><span style="font-family:verdana;">* Utmost good faith An action to disclose accurate and complete, all material facts about something that will be insured both solicited and unsolicited. The meaning is: the insurer must honestly explain clearly everything about the scope of terms and conditions of insurance and the insured must also provide clear and accurate description of the objects or interests of the insured.</span><br /><br /><span style="font-family:verdana;">* Proximate cause A cause of active, efficient cause a train of events that lead to a result without the intervention of which started and working actively from a new and independent sources.</span><br /><br /><span style="font-family:verdana;">* Indemnity A mechanism by which the insurer to provide financial compensation to put the insured in a financial position that he had immediately before the loss</span><br /><br /><span style="font-family:verdana;">* Subrogation The transfer of demand from the insured to the insurer after a claim is paid.</span><br /><br /><span style="font-family:verdana;">* Contribution Rights of insurer to another insurer invite equally bear, but do not have the same obligations to the insured to participate provide indemnity.</span><br /><br /><span style="font-family:verdana;">Some people consider insurance as a form of betting in force during the policy period. Insurance companies are betting that the property buyer will not be lost when the buyer paid the money. The difference in fees paid to the insurance company against the amount they can receive when the accident happened almost the same as if someone bet on horse racing (eg, 10 to 1). For this reason, some religious groups including the Amish avoid insurance and rely on the support received by their communities when disasters occur. In communities close and supportive relationships in which its people can help each other to rebuild lost property, this plan can work. Most people can not effectively support the system as above and this system will not work for large risks.</span></div>Adminhttp://www.blogger.com/profile/09181813663380986719noreply@blogger.com0