In: Economics
Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured). In this, the insurance company promises to make good the losses .
Benefits;-
COSTS :
House fire, serious car wreck with bodily injury and or major property damage, total loss of house or business location due to storm, earthquake. Most people can not afford to pay for cancer treatment out of their pocket, replace their home and contents, etc. without insurance.
RECIPRAL AND MUTUAL DIFFERNCE
A reciprocal is an unincorporated risk-pooling alternative to stock or mutual insurance companies where the members, known as “subscribers,” agree to an exchange of contracts of insurance among themselves — thereby attaining a preferred level of risk pooling and diversification to indemnify the other members. The subscribers are part of an association in which the amalgamated risks are exchanged to cross-insure each other. A reciprocal is often likened to a partnership where each member is individually and severally liable, but, as is the case in — for example — a law firm, not jointly liable.
GRAM LEACH BILEY ACT
His act was enacted on nov 12 ,1999.many larger banks and insurance companies were desired in this act.this act seems to guide people to put more money in investments in insurance so that economy rise and not in saving accounts to decline the economy level