The Insurance Company is an institution, either publicly held or privately owned, which sells the insurance policy on behalf of other businesses or individuals. An organization, which can be either for-profit governmental-organized or privately owned, who sells the policy on behalf of other businesses or individuals, is known as a provider. For instance, if you buy health insurance from your employer, then the insurance company is usually going to cover (some of) your medical expenses, if any. Otherwise, you will have to find and pay for your own medical care, as your employer’s coverage may not extend to you, even if you have a pre-existing medical condition. -Get More Info
Insurance Companies are established to earn a profit, and that profit is usually by collecting premiums on behalf of their customers. Premiums are what the Insurance Company pays the insured in return for the financial loss that it incurs when it carries out its duties. Insurance Companies are generally regulated by public regulation or private law. Private laws usually regulate matters such as the amount of premiums that the Insurance Company can charge its customers. Public regulation usually requires Insurance Companies to provide minimum services to their policyholders, such as informing them about their rights and responsibilities and providing the correct premium and other related information to their customers. These regulations also require Insurance Companies to explain their policies and their interpretations of the laws to their clients.
In general, Insurance Policies are purchased through an agent or broker. Brokers represent many different Insurance Companies and help their customers find the right Insurance Policy, at the right price, for their particular needs. Some of the services that an Insurance broker provides include finding the right Insurance Company, finding an appropriate level of coverage, comparing different insurance policies and preparing and reviewing their insurance quotes. They also handle the negotiations between the customer and the Insurance Company. Finally, an Insurance agent or broker collects the premium payments from their customers and disburses them to the appropriate Insurance Company.