Underwriting is the process of evaluating the risk to be insured. This is finished by the insurer when determining how likely it is that the loss will occur. How much the loss and then using this information. This determines how much you should pay to insure against the risk. The underwriting procedure will permit the insurer to determine what applicants meet their consent standards. The insurance company could only accept applicants that they estimate will have actual loss experiences that are comparable to the expected loss experience factored into the company's premium fees. This depending on the form of insurance product you are buying; the underwriting procedure may examine insured health records, his driving history and the insurable interest.
The concept of insurable interest stems from the idea that insurance is meant to protect and compensate for losses for an individual or individuals who may be adversely affected by a specific loss. Insurance is not destined to be a profit center for the policy's beneficiary. People are measured to have an insurable interest on their lives, the life of their spouses and dependents. The business partners may also contain an insurable interest on each other and businesses can have an insurable interest in the lives of their employees.
Related Concern Posts
The concept of insurable interest stems from the idea that insurance is meant to protect and compensate for losses for an individual or individuals who may be adversely affected by a specific loss. Insurance is not destined to be a profit center for the policy's beneficiary. People are measured to have an insurable interest on their lives, the life of their spouses and dependents. The business partners may also contain an insurable interest on each other and businesses can have an insurable interest in the lives of their employees.
Related Concern Posts
- How Does Insurance Work?
- What is Risks?
- Type of Risk
- Effect of Risk
- Cost of Risk
- Mitigating Risk
- Risk Control
- Risk Financing
- What is Risk Sharing?
- What is the Risk Management Process?
- What is Insurance Contract?