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Commercial Insurance Agency Guide |
In general commercial
insurance is a way of education and management of insurance
funds, when this task is created by specialized commercial insurance
brokers
in the insurance organization, whose purpose is extracting from the
insurance profits on the basis of commercial insurance policy.
Commercial insurance is a type of entrepreneurial activity. The
insurance fund is created by contributions to the charter capital of
money and material resources of the founders of the insurance company
and by attracting funds from insurers. The differences that existed
between the amount of insurance premiums and insurance payments, taking
into account the cost of doing business, is profit the insurance
organization.
Commercial insurance is built on the basis of risk assessment. The
higher the risk is, the higher is the tariff which must be paid. In
social insurance such a principle can not apply. Take, for example,
medical insurance. It is clear that sicker people are in the age, and
if we would perform this type of insurance on a commercial basis, the
highest rate would be paid to the old and sick people, which is
unacceptable from the standpoint of society. Therefore, in this case,
the principle of solidarity is when a public mechanism of social health
insurance pays for the sick people.
In the pension insurance the same principle works. If we proceeded from
the fact that we need to provide a pension at the International Labor
Organization standards - not lower than 40% of lost wages - and went to
all insured people in positions of commercial insurance, we would need
to take more from those who receive small salary. |
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