Global Design And Business

One of the causes of the crisis affecting several sectors is that while poor results are given in one of them will end up affecting the other end of the network fabric. This is an engine for the economy when things are working well and a drag when things start to fail.

The automotive industry is one of the hardest hit by the current economic situation and this is beginning to be felt in all its ramifications. In a recent conversation with a head of a workshop I commented that mark important data on which it had not fallen and that the current problems of these companies is not limited solely to a drop in sales of vehicles, repair of small minor damage type minor scrapes and bruises (one of the most profitable) are starting to fall and the reason is the linkage of such repairs with insurance against all risks.

The relationship is pure logic, by reducing the sale of cars is reduced recruitment of insurance, since this is a strong links to vehicles with no more than 3 years old. This makes minor repairs to be out of the consumer’s pocket instead of insurance companies and not be a priority for the operation of the vehicle to stop with the consequent reduction in workload for the workshops.

Collateral damage that directly affect our industry and a branch as important as the automobile.

Reserves of insurance companies are of two kinds. The first group consists of net and carried out, as in all businesses, for example, Legal Reserve Reserve Optional Reserve General Provident etc.

The other group is composed of the technical operation of its own insurance.

The reservations of the first group are designed to increase the resources of the company, prevent future losses or to make subsequent distributions between partners or shareholders. In contrast, the technical reserves are not responding to these purposes and represent a liability or commitment by the insurance company, putting well highlighted the essential difference between the two types of reserves.

Provision for current risk: A certain portion of the premiums paid each year on insurance if any, are transferred to this reserve. For each of the classes of insurance that is operated using a pool of this nature, both direct insurance and for reinsurance taken.

The insured to obtain insurance, acquires the obligation to pay the premium in advance. Do immediately or in installments, the fact is that the company has an active mass of values which must deal with claims relating to policies issued. Casualties occurring in the year of issuance of the policy is credited with the mass values. But you may find casualties in the exercise later. Therefore, to meet its payment is necessary to book in premiums each year, a certain proportion, which is credited to the Reserve of current risk of each of the possible insurance.

On the establishment of such reservations apply the following rules:

o In general, for any insurance risk must reserve 80% of premiums, net of reinsurance and cancellations, which are representative of the risk does not run at the year end.

In marine insurance or who is hired by the travel booking is made by total premiums, net of reinsurance and cancellations, for the last two months of each year.

o insurance and fidelity guarantee should be reserved for 40% of net premiums each year and an additional 15% on average net premiums for the past three years.

Math Book: It is for life insurance. Theoretically these insurance premiums, given their nature, should be raised continually, by the greater likelihood of death of the insured as time passes. But if so do life insurance would be prohibitive from a certain age. To avoid this inconvenience insurance companies receive premiums or half flush. Mean that an insured will pay their premiums too early with respect to what is appropriate for their likelihood of death, and pay lower premiums after a certain age. The amount paid in excess during these early years, is the premium savings. With this and the part that takes the risk premium, as well as accrued interest, is the mathematical form of insurance.

Reserve for outstanding claims: This reserve is credited with the amount of claims reported to remain in the process of settlement and for this reason have not been paid, whether direct insurance or reinsurance.

Life Insured Accumulation Fund: this fund is credited to the items to be distributed among the policyholders of the Life section as fringe benefit under the conditions stipulated in the policies. These items can be useful in this Section or income thereof shall affect this end.

There’s a new type of Web site out there, one that aims to help baby boomers buy long term care Insurance more easily. The idea is that the next generation has seen our parents’ long term care needs and wants to have its own solution. Those who believe that Medicaid will step in are very wrong, and they are certainly not alone as this is a common belief. More can be found here. The first question a buyer may want to ask themselves would be: What is Long Term Care Insurance? The site gives all the details, but in a nut shell, it is the insurance that takes care of people who are too well to be in the hospital, yet to sick to be independent.

The policies are issued when you cancel the insurance contract terminates. This usually occurs in the following cases:

* Failure to pay the premium.

* Change owner of the thing insured.

* Reluctance.

* Fraud by the insured.

With the cancellation of the policy the insurer is only entitled to a premium for the risk you run.

Claims Settlement

Claims that communication begins with the insured or the beneficiary of the insurance must be made to the insurer, to make this pay the sum insured. For the settlement of claims are required three steps:

1. The verification of the incident.
2. Valuation.
3. The settlement, to make your payment.

In order to fully verify the claim, the insurer requires a series of tests designed to that end and makes all efforts to ensure that it considers appropriate in the event that is covered by insurance.

The valuation of the damage to the insured in the insurance on things is very important because the amount of compensation depends not only on the sum insured, but also the value of things in the days of the incident. The value of insured property requires the intervention of experts or expert liquidators.

Reinsurance is a contract by which an insurer has taken a direct part of it transferred insurance to another insurer, which therefore takes the responsibility to pay the proportion that corresponds in the event of the risks specified in the insurance contract.

The risk can be assumed that technically an insurance company have a limit, after which imposes the need for reinsurance to transfer to other companies such excess risk.

The basic rule for establishing the limit of risk that can assume is in the uniformity of capital insured for each company.

To avoid an imbalance that can cause lack of uniformity in the capital, the companies reinsure part of insurance that exceeds the normal limit of insurance capital.

The limit of the risks that can run an insurance company is called full. The company that gave the surplus of its full and transferor is called a reinsurance liabilities. The company that takes the reinsurance is called the grantee, and a reinsurance asset.

In turn, a reinsurance asset may be the subject of a new reinsurance with another company. This is called retrocession reinsurance. Usually companies pay to the transferee cedants the same premium charged to policyholders and paid them a commission higher than that payable to their agents or brokers.

In our country reinsurance is regulated by INDER (National Institute of Reinsurance), which monopolizes the domestic reinsurance companies and 30% approx. The foreign companies. In turn the I.N.D.E.R. can go back to their reinsurance companies operating in foreign country or foreign insurers.

Most insurance companies are corporations in which the sovereign body is the Assembly of Shareholders and its governing body the Board of Directors or Directors appointed by the shareholders meeting in assembly.

Directory Management reports directly to the General, who, like any business, is the executive responsible for driving the company pursuant to resolutions adopted at that.

Acceptance and Issuance of Insurance Policies

The issuance of the policies is done via the following steps:

1. Application of insurance.

2. Verification of all information contained in the application.

3. Acceptance of insurance.

4. Issuance of the policy.

The application is the proof of insurance whereby the insured asks the insurance company a certain. Therefore it contains the information necessary for the insurer knows exactly who has the risk of running out insurance. The main data are:

* Date.

* Identification Data insurable.

* Object and the insurance risk.

* A description of the thing to be sure.

* Amount of insurance.

The declaration reduces health costs of issuing the policy, because it is less costly to make such a statement verifying the medical review, and simplifies management at the insured to induce him to take a life insurance. Accepted the request, the policy is issued pursuant to that data and delivers accordingly.

Premium: The price of insurance that pays the insured to the insurer as consideration of the risk he takes and the commitment which is their consequence.

There are different types of bonuses:

* First natural

* Pure Premium

* First Commercial

* First level

* Single premium

* First regular

Premium natural: In the life insurance premium is dependent on the mathematical calculation of risk. For this reason, a higher risk, the higher the premium natural and vice versa.

Premium: The risk premium of other classes of insurance.

First name: this is the premium paid by the insured and actually consists of two parts: the premium or pure natural on the one hand and operating costs and profit of the insurer on the other. Of these costs are the most important:

* Commission for producers who placed insurance.

* Commission charge that is payable to staff for the collection of premiums.

* Administrative expenses and advertising.

* Surcharge for splitting the premium. The premium can be split through regular contributions, and this gives rise to a charge, as is often the case with sales to run.

* Margin of safety. It is a charge for any increase in expenditure and in particular the possibility of an increased risk.

First level: The implementation of premium natural simple to calculate the premium would be prohibitive commercial life insurance, from a certain age. In this case the premium commercial and continuous increase of the time when the insured desistiría of the contract given the high price they must pay for their insurance. It has therefore been necessary to level premiums so that the premium market is the same in life insurance for the duration of the contract.

Single premium is payable by the insured when it is done on a single occasion.

Periodic premiums: the premium is paid only with partial payments, thus providing a possibility that the insured can decide on the merger of these operations.

The risk: It is a major factor in the insurance business. Is the subject of insurance as a prevention measure uncertain event that occurs forces the insurer agreed to pay compensation. In the insurance risk is always uncertain. Even the death of a person who has fatally happen sooner or later, is an uncertain event could be sure, because no one knows when it has to happen.

For an uncertain event, it can certainly not depend on the willingness of insured since then there would not be able to secure. The risks are also on the things a certain regularity which makes the field of insurance. The insurer has established practice standards for measuring risk and calculating the standards to be collected by the insurer.

Determines the risk premium charged, and consequently for aggravated risks related to the normal risks, the premium will be higher. In the insurance risk assumed by the insurer must be defined very clearly, because it is a crucial element in this agreement.

Furthermore, it is necessary that the subject matter of insurance is properly characterized in order to enable the insurer to know where lies the risk.

Pay the premium: the policyholder must pay the premium plus any taxes, fees, and other sealed regargos establishing or authorizing the insurance regulations.

The total of what the policyholder must pay the prize is sure.

If the premium is not paid on time, the insurer is not responsible for the sinistro occurred prior to payment.

The premium can vary during the contract, increasing or decreasing when increases or decreases the risk covered.

Report the status of risk: The policyholder should accurately describe the risks, in relation to the person or thing on which rests the insurable interest.

Reluctance to be called false claims or circumstances known to silencing, which experts believe would have prevented the contract, or modified their conditions. The reluctance entitles the insurer to cancel the contract.

Report worsening of the risk: The holder must report all the facts, themselves or others, which may exacerbate the risks, increasing the possibility of loss.

Report the accident: The policy holder must report the incident within three days of events. Must report and prove the damage it has suffered and allow the insurer to verify the existence of the act and the harm occasion.

Rescue: The holder must do everything necessary to prevent or lessen the damage.