Insurance is a risk management technique primarily used to hedge against the risk of a contingent, uncertain loss that may be suffered by those individuals or entities who have an insurable interest in scarce resources, by transferring the possibility of this loss from one interested person, persons, or entity to another. The scarce resources referred to here fall into three divisions: human resources, financial resources, and capital, or tangible resources. In the context of insurance, scarce resources are also known as "exposures," because they are "exposed" to perils, those things, or forces, which cause destruction or reduction, in the usefulness, or value, of an exposed resource. Human resources are thus exposed to perils such as illness or death; financial resources to legal judements that may result from negligent acts, and capital resources to physical perils such as fire, theft, windstorm, and vandalism, to name but a few. A hazard is the cause of a peril. It is that thing or condition which increases the liklihood of a peril. Thus perils and hazards are identified by the exposure that they threaten. For example a slippery roadway could be viewed as a financial hazard, capital hazard, or human hazard by automobile owners, and rightly so, since this condition increases the liklihood of an automobile accident that might result in an unfavorable legal judgement, automobile damage, and bodily injury.
In the context of commercial trade, insurance is further defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for consideration, payment, in the form of a risk premium. The insurance premium develops at an actuarily-determined rate. This rate is a factor used to determine the amount of premium to charge for a certain limit, and type, of insurance on the scarce resource. The premium can further be viewed as a guaranteed, known, relatively small financial loss to the insured, paid to the insurer, in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a loss to the insured resource(s). The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be indemnified
Friday, 15 July 2011
Regular Vehicle Maintence
Keeping your car in good condition is the key to another potential way to save money on your monthly car insurance payment Keeping your vehicle in good shape and staying on top of any minor problems can go a long way toward heading off more serious problems down the road And since a sudden breakdown can easily startle a driver possibly even cause a crash you should consider regular maintenance an important factor inkeeping your auto insurance costs down.
Health Insurance Leads to Healthier Americans
Health Insurance Leads to Healthier Americans
There’s a new study out today that confirms just how important health insurance and the Medicaid program really are The study is already making waves with Ezra Klein calling it +the most important health-care policy experiment since the 1970s.” Heres how it worked:
In 2008 Oregon expanded Medicaid eligibility to a group of low-income uninsured adults. But at that time, more people were eligible for Oregons Medicaid program than the state could afford, so they set up a lottery to determine who would receive coverage.
The Oregon Health Insurance Experiment looked at what happened to the people who won the lottery and received coverage through Medicaid compared to those who did not And the results are even more positive than we anticipated. The study found that:
Providing these Americans with health insurance led to a significant increase in the use of critical preventive services. For example, women with coverage were 60% more likely to get mammograms and 20% more likely to have their cholesterol monitored.
Those with insurance were 70% more likely to regularly visit their primary care doctor.
People who gained coverage saw sizable improvements in their health and well-being.
Those with insurance saw greater financial security and savings for providers According to the report “Insurance decreased the probability of having an unpaid medical bill sent to a collection agency by 25% - which also benefits health care providers since the vast majority of such debts are never paid.”
In addition to the positive effects of insurance for those covered, the study also found good news for States that expand Medicaid coverage. Researchers found that:
The costs of a Medicaid expansion in terms of increased health expenditures are considerably smaller than prior research has suggested.
Improving access to public insurance for uninsured people did not lead to subsequent reductions in private insurance coverage.
Today our country is having an important debate about the future of Medicaid President Obama has proposed a framework that will strengthen Medicaid make it more efficient and continue to provide services and support to the millions of children families seniors and pregnant women who depend on Medicaid every day.
In contrast, Republicans have offered a plan to turn Medicaid into a dangerously underfunded block grant Under their plan states would get one-third less for Medicaid by 2021 15 million people could be left without coverage.
We know – and today’s study confirms – that Medicaid is making a difference in the lives of millions of Americans and the President will continue to fight to strengthen Medicaid.
Sherry Glied is HHS Assistant Secretary for Planning and Evaluatio
There’s a new study out today that confirms just how important health insurance and the Medicaid program really are The study is already making waves with Ezra Klein calling it +the most important health-care policy experiment since the 1970s.” Heres how it worked:
In 2008 Oregon expanded Medicaid eligibility to a group of low-income uninsured adults. But at that time, more people were eligible for Oregons Medicaid program than the state could afford, so they set up a lottery to determine who would receive coverage.
The Oregon Health Insurance Experiment looked at what happened to the people who won the lottery and received coverage through Medicaid compared to those who did not And the results are even more positive than we anticipated. The study found that:
Providing these Americans with health insurance led to a significant increase in the use of critical preventive services. For example, women with coverage were 60% more likely to get mammograms and 20% more likely to have their cholesterol monitored.
Those with insurance were 70% more likely to regularly visit their primary care doctor.
People who gained coverage saw sizable improvements in their health and well-being.
Those with insurance saw greater financial security and savings for providers According to the report “Insurance decreased the probability of having an unpaid medical bill sent to a collection agency by 25% - which also benefits health care providers since the vast majority of such debts are never paid.”
In addition to the positive effects of insurance for those covered, the study also found good news for States that expand Medicaid coverage. Researchers found that:
The costs of a Medicaid expansion in terms of increased health expenditures are considerably smaller than prior research has suggested.
Improving access to public insurance for uninsured people did not lead to subsequent reductions in private insurance coverage.
Today our country is having an important debate about the future of Medicaid President Obama has proposed a framework that will strengthen Medicaid make it more efficient and continue to provide services and support to the millions of children families seniors and pregnant women who depend on Medicaid every day.
In contrast, Republicans have offered a plan to turn Medicaid into a dangerously underfunded block grant Under their plan states would get one-third less for Medicaid by 2021 15 million people could be left without coverage.
We know – and today’s study confirms – that Medicaid is making a difference in the lives of millions of Americans and the President will continue to fight to strengthen Medicaid.
Sherry Glied is HHS Assistant Secretary for Planning and Evaluatio
What is Insurance?
What Does Insurance Mean?
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
My Blog explains Insurance
When shopping around for an insurance policy, look for the best priced package that is right for you - prices can vary from one insurance company to the next. And make sure you know what you want. Some individuals, for example, prefer 24-hour claims service or face-to-face contact with an insurance representative. Also consider the claims settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price.
A contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.
My Blog explains Insurance
When shopping around for an insurance policy, look for the best priced package that is right for you - prices can vary from one insurance company to the next. And make sure you know what you want. Some individuals, for example, prefer 24-hour claims service or face-to-face contact with an insurance representative. Also consider the claims settlement process, the amount of the deductible and the extent of the replacement coverage. Insurance companies and the policies they offer are not all the same, so think about more than just the price.
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