About Us
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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