Following is a short and comprehensive general summary of health insurance terminology and insurance providers as a complete.
Insurance Terms Defined
Insurance is all about minimization of danger. An insurance company assumes risk for a commission called a premium.
In its most straightforward form, insurance is a wager. The suggested insured stakes that a specific hazard (hazard) or occasion will happen. The company bets that the danger or event won’t happen.
If and when the danger or event happens, the company loses the wager and must cover the insured a claim or gain.
There are two chief categories of insurance companies: Property/Casualty (PC), and Life/Disability (LD).
An agent using a PC license normally insures matters, like homes, cars, and other land, in addition to liability against specific perils.
An agent having an LD license insures individuals: Life, disability, and long-term care insurance.
Generally, either broker can supply health insurance.
There are essentially two sorts of insurance brokers: A captive agent is an agent that reflects and is normally tied to a particular company. A non-captive broker is an agent that will represent several businesses, permitting the broker to provide more choice to her or his customer.
Typically, a proposed insured must be eligible for coverage based on particular problems.
Policies have specific ailments.
Policies have exclusions, meaning certain perils or events are excluded from claims or benefits.
Some policies can’t be canceled by the company so long as the insured pays the premium.
The 2 kinds of insurance businesses are stock companies, which are possessed by the stock holders, and mutual businesses that are owned by the policyholders. Mutual companies provide dividends.
There Are Lots of conditions that pertain to insurance companies, based on the Kind of insurance:
Policy owner-generally that pays the premium and makes conclusions and makes coverage decisions.