Insurance Meaning

Copay plans may make it easier for insurance holders to budget their out of pocket costs because it is a fixed amount.

Insurance meaning. Risk transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event s beyond the control of the insured party. Often called d o is liability insurance payable to the directors and officers of a company or to the organization s itself as indemnification reimbursement for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action. Directors and officers liability insurance also written directors and officers liability insurance. A clause in an insurance policy that indicates that the insurer will only cover the least expensive option for treatment repair or remediation.

Coinsurance usually splits the costs with the policyholder 80 20 percent. An agreement in which you pay a company money and they pay your costs if you have an accident. Insurance definition the act system or business of insuring property life one s person etc against loss or harm arising in specified contingencies as fire accident death disablement or the like in consideration of a payment proportionate to the risk involved. An agreement in which you pay a company money and they pay your costs if you have an accident.

The company that purchases the reinsurance policy is called a ceding company or cedent or cedant. Insurance definition is coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril. How to use insurance in a sentence. Insurance is designed to.

A promise of compensation for specific potential future losses in exchange for a periodic payment. With reinsurance the company passes on cedes some part of its own insurance liabilities to the other insurance company.