This is a process through which security against loss in value or worth is given. The entity which offers the protection against that financial loss is usually known as the insurer or underwriter. An insured is a person, set of individuals or organization that benefits from the protection of an insurance policy by an insurance company. There is usually a set of rules and conditions which determine the circumstances under which compensation can be made to the policyholder by the insurance carrier.
The insured is also expect to part with a certain amount of money known as the premium in order to facilitate the insurance cover by the insurance carrier. The process of making a claim by the insured to the insurance company when a financial loss is experienced involves the undertaking of a claim adjuster by the insured. There are several guidelines that an insurance company will follow in issuing out insurance policies to the insured.
An insurance company will provide for an insurance cover for a loss in value in the event that there is a large number of like risks. This is because insurance companies usually work through the pooling together of resources in order to actualize compensation in the event of a financial loss. The insurance company will offer insurance cover for a possible loss whose time and place of occurrence as well as the cause are well known.
An accidental loss or a loss that is not planned or orchestrated by the insured is legible for covering by an insurance carrier. Another characteristic of a financial loss that is legible for cover by an insurance organization is that the loss should not be small. Another prospect of an insurance cover follows the fact that the premium that is charged on the insured has to be manageable.
Additionally, in the event of making a cover against a probable financial risk, an insurance company has to observe that the loss is calculable. Another characteristic that would qualify it for insurance by an insurance company is that the loss should not have the probability of happening in a sequence of similar losses at the same time thereby constituting to large losses. There are different kinds of insurance covers that are provided by the insurance company against different kinds of risks.
An auto insurance is one of the insurance covers which offers covering against the damage or loss of a vehicle owned by an insured in the event of an accident. Theft and other damages that may occur to the vehicle of the insured are also covered I the auto insurance.