More on Insurance

Insurance companies are financial institutions that deal with insurance. The industry which encompasses the insurance companies is mainly concerned with providing protection against financial losses resulting from a variety of hazards. By purchasing insurance policies, individuals and businesses can receive reimbursement for losses due to car accidents, theft of property, and fire and storm damage; medical expenses; and loss of income due to disability or death. This mans that the insurance is responsible for getting you another car, house or whatever it is you have insured. In the case of life insurance, the company pays your money to your next of kin. That is why they usually ask of the name of your next of kin.
This industry of insurance consists mainly of insurance carriers and insurance agencies and brokerages. Generally insurance carriers are large companies that provide insurance and assume the risks covered by the policy. Insurance agencies and brokerages sell insurance policies for the carriers. While some of agencies and brokerages are directly affiliated with a particular carrier and sell only that carrier's policies, many are independent and are thus free to market the policies of a variety of insurance carriers.
Furthermore the insurance industry includes establishments that provide other insurance-related services, such as claims adjustment or third-party administration of insurance and pension funds. These other insurance industry establishments also include a number of independent organizations that provide a wide array of insurance-related services to carriers and their clients like the processing of claims forms for medical practitioners, loss prevention and risk management. Also, insurance companies sometimes hire independent claims adjusters to investigate accidents and claims for property damage and to assign a dollar estimate to the claim.
Nomenclatures in Insurance
Premium: This is the amount of money you pay an insurance company for an insurance policy. This specified amount is paid regularly to the company.
Insurer: This is the insurance company that offers insurance against loss or damages. They promise to pay a specified amount to the insured to compensate for loss the insured may have in the future.
Insured: If you go to an insurance company to be insured against accident, burglary, theft, bodily injury and many other you are known as the insured in insurance terms.
Brokerage: This is the charge or commission an insurance broker charges you for services rendered to you.
Broker: This is also known as an insurance agent. It is him or her that you deal with in an insurance company. For any questions or comments or explanation about your policy you ask him or her.
Risk: Risk simply means the possibility of meeting danger or suffering los or harm. In insurance, it is usually a person or thing that is a source of risk.
Policy: A set of ideals, a plan of action, proposed or adopted by a government, political party, business or corporation is a policy. In insurance it is the terms of a contract of insurance.