Purchase insurance
Purchase insurance is aimed at providing protection on the products people purchase. Purchase insurance can cover individual purchase protection, warranties, guarantees. Title insurance provides a guarantee that title to real property is vested in the purchaser or mortgagee, free and clear of liens or encumbrances. Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, loss of personal belongings, travel delay, and personal liabilities. Interest rate insurance protects the holder from adverse changes in interest rates, for instance for those with a variable rate loan or mortgage.
Care plans and even mobile phone insurance. Such insurance is normally very limited in the scope of problems that are covered by the policy. It is usually issued in conjunction with a search of the public records performed at the time of a real estate transaction. Tuition insurance insures students against involuntary withdrawal from cost-intensive educational institutions. Divorce insurance is a form of contractual liability insurance that pays the insured a cash benefit if their marriage ends in divorce.
Insurance financing vehicles
No-fault insurance is a type of insurance policy where insureds are indemnified by their own insurer regardless of fault in the incident. Fraternal insurance is provided on a cooperative basis by fraternal benefit societies or other social organizations. A properly designed and underwritten Protected Self-Insurance Program reduces and stabilizes the cost of insurance and provides valuable risk management information. Retrospectively rated insurance is a method of establishing a premium on large commercial accounts. Numerous variations of this formula have been developed and are in use. Protected self-insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the catastrophic risk with specific and aggregate limits to an insurer so the maximum total cost of the program is known.The rating formula is guaranteed in the insurance contract. Formula: retrospective premium = converted loss + basic premium × tax multiplier. The final premium is based on the insured's actual loss experience during the policy term, sometimes subject to a minimum and maximum premium, with the final premium determined by a formula. Under this plan, the current year's premium is based partially on the current year's losses, although the premium adjustments may take months or years beyond the current year's expiration date. Formal self-insurance is the deliberate decision to pay for otherwise insurable losses out of one's own money. Reinsurance is a type of insurance purchased by insurance companies or self-insured employers to protect against unexpected losses. Financial reinsurance is a form of reinsurance that is primarily used for capital management rather than to transfer insurance risk. While this is true for all insurance, for small, frequent losses the transaction costs may exceed the benefit of volatility reduction that insurance otherwise affords.