Forums » Life Insurance


Insurability of Specific Risks

    • 144 posts
    February 28, 2014 7:21 AM IST


     

    People Involved in the Insurance Policy:

     

    Applicant is the person or business that applies for an insurance policy.

    Policy Owner is the person or business that owns the insurance policy.

    Insured is the person whose life or health is insured under the policy.

    Life insured is the person who is insured by a life insurance policy.

     

    Third-Party Policy is a policy, when one person purchases insurance on the life of another

    person.

     

    Beneficiary is the person or party, the policy owner named to receive the policy benefit.
     

    Assessing the Degree of Risk:

    When an insurance company receives an application for insurance, the company must assess the

    degree of risk it will take on if it agrees to issue the policy.

    The individual who believes an greater-than-average likelihood of loss tend to seek insurance

    protection to a greater extent than do those believes an average or less-than-average likelihood

    of loss. This tendency is called antiselection, adverse selection, or selection against the insurer.

    The process of identifying and classifying the degree of risk represented by a proposed insured

    is called underwriting, or selection of risks.

     

    • 100 posts
    February 28, 2014 7:44 AM IST
    Nice
    • 144 posts
    February 28, 2014 7:44 AM IST

    thanks 

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