This is a process through which security against loss in value or worth is given. The entity which offers the protection against that financial loss is usually known as the insurer or underwriter. An insured is a person, set of individuals or organization that benefits from the protection of an insurance policy by an insurance company. There is usually a set of rules and conditions which determine the circumstances under which compensation can be made to the policyholder by the insurance carrier.
The insured is also expect to part with a certain amount of money known as the premium in order to facilitate the insurance cover by the insurance carrier. A claim adjuster is usually processed by the insured in the process of making a claim to the insurance carrier in the event that a financial loss which is catered for in the insurance agreement happens. For an insurance cover to be effected by the insurance company to the policyholder, a list of set guidelines is usually adhered to.
An insurance company will provide for an insurance cover for a loss in value in the event that there is a large number of like risks. This is because insurance companies usually work through the pooling together of resources in order to actualize compensation in the event of a financial loss. The kind of financial loss that is catered for in the insurance policy offered by an insurance company has to be definite in that its cause, time and place of happening can be determined.
Another condition under which the insurance organization will accept to get the give an insurance protection against the financial loss that may be suffered by an insured is that the financial loss has to be out of the control of the insured. Another characteristic of a financial loss that is legible for cover by an insurance organization is that the loss should not be small. Similarly, the insurance company also has to make sure that the premium to be paid by the insured can be calculated and subdivided into small affordable amounts.
The probable financial loss for which an insurance cover is provided for by an insurance carrier to an insured should follow that the financial loss is calculable. The insurance company also has to make sure that the financial loss covered for in an insurance policy does not have huge risks in the resulting to catastrophically large losses. An insurance company offers a number of insurance covers that protect against different financial losses.
One of the insurance covers that is provided for by an insurance company is auto insurance that protects an insured against a loss of value in the event of a traffic accident which involves their vehicle. This protection also caters for other occurrences such as the destruction of the vehicle or loss of the vehicle through theft.