What is Insurance?
The insurance industry dates back hundreds of years, with Lloyd’s of London serving as one of the oldest insurance organizations. Many of the terms used in modern insurance, such as underwriter and premium, had their origin at the coffee house of Edward Lloyd. There are many positive aspects to the products and services provided by the insurance industry.
Fires, floods, earthquakes, tornadoes, hurricanes, car accidents, burglaries--the list is nearly endless when you consider the many risks you face in your daily life. Luckily, you don’t need to face them alone. Insurance is available to help you pay for damage to your property or to pay others on your behalf when you injure someone or damage their property.
Insurance protects individuals from risk of uncertain outcomes. It’s a contract that transfers the risk of financial loss from an individual or business to an insurer. The insurer collects smaller amounts of money from its clients and pools that money together to pay for losses. There are different types of insurance for different types of protection. When someone purchases insurance, they purchase what’s called an insurance policy.
Susie’s Super Sweet 16: When Susie turned 16 her parents pulled out all the stops. The vampire themed sweet 16 party was well attended and the faux blood beverages flowed. At the end of the event, everyone was asked to join her parents outside for the great-gift unveiling. In true made for TV fashion, a green two-door sedan was parked in the driveway with a large red bow. But, before letting her take the driver’s seat, Susie’s parents made sure to add her “new” pre-owned car to their insurance policy. That way, if something where to happen, Susie and her family would be protected and the insurer would help.
Risk and Probability Dice Game
Insurance uses probability to determine insurance premiums based on various risk factors. The more risk an exposure has the more insurance companies need to collect to pay anticipated claims. To get a better understanding play the Risk and Probability interactive game.