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Insurance may be a contract of reimbursement. for instance, it reimburses for losses from specified perils, like fire, hurricane, and earthquake. Insurance is that the company or one that promises to reimburse. The insurance (sometimes called the assured) is that the one who receives the payment, except within the case of life assurance, where payment goes to the beneficiary named within the life assurance contract. The consideration paid by the insurance —usually annually or semiannually—for the insurance promise to reimburse. The contract itself is named the policy. The event's insurance against is understood as risks or perils.
Regulation of insurance is left mainly within the hands of the state, instead of federal, authorities. Under the McCarran-Ferguson Act, Congress exempted state-regulated insurance companies from the federal antitrust laws. Every state now has an insurance department that oversees insurance rates, policy standards, reserves, and other aspects of the industry. Over the years, these departments have come under attack in many nations for being ineffective and “captives” of the industry. Moreover, large insurers operate altogether states, and both they and consumers must deal with fifty different state regulatory schemes that provide very different degrees of protection. From time to time, attempts are made to bring insurance under federal regulation, but none are successful.


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