Insurance > Insurance And Ethics

Insurance And Ethics

by: Joseph Kenny

Insurance contracts are often seen as a form of gambling. That is because they appear as a type of wager that takes place over the lifetime of the policy. Basically the insurance company is willing to bet that you and your property will not suffer the loss insured against. In exchange for making this bet, and taking on the risk, the receive your premium. If they win the bet, they keep the premium, if they lose, they make the payout. In this sense, they are often compared to a type of long term financial casino.

The difference between your premium amount, and the amount the insurance company will have to pay out if the loss occurs, is simply the odds the insurance company is getting for taking on the bet. It?s just like going to the horse races and betting on a horse that pays out 10 to 1.

This view of insurance has led to a number of people and religious communities disapproving of insurance because of its similarities to gambling. Among those groups that avoid insurance are the Amish and Muslim communities. What these people do instead is create a system of what is known as social insurance. What this means is that if there is a disaster and someone suffers a heavy loss, then the whole community will step forward and help them to deal with their loss and rebuild. While this system is very simple, it has the potential to be just as effective a safety net as insurance. However, it requires that the community actually does step forward and help those who suffer from disasters. This means that it is more successful in small closed and closely knit communities than in large modern societies.

Social insurance systems therefore are not always effective. Often the community that is supposed to adopt it is not suitable. Also, in very large disasters the system can break down as a small community will not be able to rebuild itself completely without outside assistance. This is why larger modern insurance systems can be more robust. However, in extremely large disasters, modern insurance systems can also run into difficulties. This is witnessed by the fact that it is impossible to insure against certain risks such as floods and earthquakes. This is because the damage would be simply on too large a scale for the insurance companies to cope with.

There are other ways in which insurance doesn?t follow the gambling model. For instance insurance companies seek to reduce the risk of the loss occurring constantly, for instance by requiring the installation of fire alarms, or by reducing the loss if the insured against event does occur, for example by providing rehabilitation to accident victims. Therefore insurance is like a gamble in the reward and risk elements, but other elements are different.

About The Author

Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of car insurance in the UK

Car Insurance - How Can You Lower Your Premiums?

by: Michael Challiner

Many factors influence the premium for your Motor insurance policy. Your insurer will have asked you many questions whilst producing your quote - some of which will affect your premium and some will not. Below we discuss the key variables that are within the policyholder's control.

Consolidating policies

By insuring a number of vehicles with the same insurer, or by trying to take out home and life insurance through your car insurer, you may be able to secure a ?bulk buy? discount.

Location

A big influence on the cost of your car insurance is where you live. The chance of your car being broken into or stolen is a key concern for the insurer. More urban areas traditionally facing greater risk of theft and therefore tend to be more expensive than countryside locations.

Excess

By agreeing to pay a greater excess on each claim you can reduce your car...

Car Insurance - How Can You Lower Your Premiums?

Insurance > Car Insurance - How Can You Lower Your Premiums?

Auto Insurance Guide- Get your Auto Insurance Policy

Auto Insurance Guide- Get your Auto Insurance Policy

by: Gagandeep Dhaliwal

Auto insurance provides complete protection against losses happened as a result of vehicle accidents. Normally it includes car insurance and motor insurance. The customers purchase this insurance policy just to reduce the risk incurred due to accidents of cars, trucks and other vehicles. People can also secure their vehicles against theft, fire damage or accident damage.

Auto insurance policy may cover insured party, insured vehicle as well as third party that are involved in the accident. Sometimes policy is valid for certain circumstances. Different policies are available for the customers and they can purchase anyone as per their requirements. Coverage levels can vary for each auto insurance policy.

Insurance is one of the essential things to secure you, your family as well as your vehicle. You?ve to just pay a certain amount of premium for a fixed period...

Auto Insurance Guide- Get your Auto Insurance Policy

Insurance > Auto Insurance Guide- Get your Auto Insurance Policy

5 Ways Poor Credit Scores Costs You Extra Money

5 Ways Poor Credit Scores Costs You Extra Money

by: Jeanette Joy Fisher

Most of us want a good credit report to obtain automobile financing, credit cards, and to purchase a home. But, beyond these consumer loans, your credit report can cost you in everyday living expenses. What you don't know about your credit could be costing you money.

Having a credit card means that you can order tickets, rent a car, and reserve hotel rooms. Besides these conveniences, your credit report can mean that you must pay higher deposits and fees for everyday services.

Did you know that your credit history can keep you from getting utility connections, good telephone rates, the best auto insurance, home owner's insurance, or even keep you from getting hired?

1. Some utility companies set minimum standards for service connections. If your report shows collection accounts for prior utility bills, you may not be eligible for service at all. And if utility...

5 Ways Poor Credit Scores Costs You Extra Money

Insurance > 5 Ways Poor Credit Scores Costs You Extra Money

Your Auto Insurance Company For Extra Money?

by: Joe Folger

Most people, once they have an auto insurance company,

simply just let their current policy renew and renew without

checking to see if maybe they can get a better deal

somewhere else.
If that describes you, maybe you would look

into exploring your options if you knew how and painless it

really is. This article will show you just how easy the

process is.

Shopping for a new auto insurance company

The easiest and quickest and as a result the most painless

way to shop for auto insurance is to go on the internet.

Many companies can give you quotes 24/7 on their websites.

You can also get contact information for a particular auto

insurance company on their site and call them up on the

telephone.
When considering switching companies, the first

thing to do is to get comparison rate quotes from several

companies.

Your Auto Insurance Company For Extra Money?

Insurance > Your Auto Insurance Company For Extra Money?

New York Scaffold Law Protects New York Construction Workers

by: Angelo G. Faraci

There is a great deal of misinformation concerning the New York Scaffold Law. The Insurance and Business Community are wrong when they say that construction workers who are ?lax about wearing safety gear? and fall from a height and are injured can hold their employer liable under New York Labor Law Section 240, the ?scaffold law.? The Court of Appeals ruled definitively in /Cahill v. Triborough Bridge and Tunnel Authority/ that if a worker has been informed about and given safety equipment and fails to use it ?for no good reason,? the employer cannot be held liable under the scaffold law for any resulting injuries.

Indeed, under the scaffold law, if a worker is the sole cause for whatever reason of his or her injury, the owner or general contractor cannot be held liable. An owner or general contractor can be held liable for a worker?s injuries only if their failure...

New York Scaffold Law Protects New York Construction Workers

Insurance > New York Scaffold Law Protects New York Construction Workers

Life Assurance

Life Assurance

by: Gary Tallon

Planning for your future life can seem like a time consuming burden when you have a young family. After all, where do you find the time in your life to think about things like life assurance while you're struggling to keep work and home life pressures in check? Our departure from this life though cannot be predicted. You and your partner may live a good life to a ripe old age, or you could pass away tomorrow. If the worst were to happen to you, where would that leave your partner and your dependants? Would they be financially secure for the rest of their life after their loss and not have to worry about paying the mortgage? If not, then a life assurance policy is a must.

Life assurance for life and death

Life assurance, also known as life insurance, is an assurance policy that pays out a lump sum to a named person(s) in the event of your death. This type of assurance policy is inexpensive to maintain, assurance...

Life Assurance

Insurance > Life Assurance

How Much Can You Save On Your Car Insurance?

by: Derek Gardner

It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don't want to pay too much for it. So how can you save money on your car insurance premium?

Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.

Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.

Check insurance costs for the car you intend to buy....

How Much Can You Save On Your Car Insurance?

Insurance > How Much Can You Save On Your Car Insurance?

5 Top Things Baby Boomers Must Do Before Starting a Home Based Business

5 Top Things Baby Boomers Must Do Before Starting a Home Based Business

by: Patty Gale

Don't quit your day job just yet.If you are a baby boomer looking to start a home business, there are 5 essentials things you must do first.

Leaving the security of a job with an established 401(k) plan, health insurance or other benefits can create a real tug of war for baby boomers who want to pursue their dreams of owning their own business.

Analyze Your Exit Strategy

At the time of this writing, the youngest of the baby boomers are turning 42 and the oldest are turning 60.
No matter where you fall into this group, analyzing and preparing your exit strategy from your job will be crucial to your long-term success as a home business entrepreneur.
Do you have adequate savings?
If you're married, will you be able to participate in your spouse's health insurance?

Create a Financial Plan

How much is your salary...

5 Top Things Baby Boomers Must Do Before Starting a Home Based Business

Insurance > 5 Top Things Baby Boomers Must Do Before Starting a Home Based Business