General Insurance Points

Most people are familiar with the insurance of some form or another. We all have taken out home insurance, car insurance or credit insurance among others. The insurance contract is a long and complex documents with many small print. Sometimes, even the lawyers, the complexity would be lost. However, there are certain properties that require all insurance together.
[-] Any contract of insurance covers a chance event that may or may not occur. This is a risk that you are against the insurance company. The event may be a fire in your home, a car accident, medical expenses, or other events. The only exception is the life insurance that covers your death. This is an event that will occurs always, but it was the time of death is certain here.
[-] It is necessary to calculate economic loss. The insurer's risk, but they need to measure and to be able to forecast the losses. Insurance should know this kind of losses would be involved in an event should occur. Losses should be calculated in monetary value. For example, you can ensure for medical expenses or a new car, but not for the sadness that you will experience as a result of the accident.
[-] Losses should be safe. Once more, the insurance should know what types of financial risk they take one or they are not in a position at a higher price.
[-] Losses should be considerable. The financial costs of insured risks must justify the administrative costs of the insurance contract. Suppose you want to race horses. Someone to insurance companies, to assess the value of the horses, draft a contract that says that what is insured and meet the requirements you need to calculate premiums and come exhibition contract. All paid, a valuable racehorse. But if you want to make sure that your goldfish, it would be difficult to justify the effort involved in the implementation of the contract.
[-] Loss should not be a disaster. What a disaster it would depend on the size of the insurance company and the assets they have. But the insurance will not be worth anything if you lose more than the insurance company can afford. For example, insuring against earthquakes often be impossible as a loss, should events occur, it is not possible for the insurance company to pay ever.