All Insurance is based on a principle called
A) investment premiums
B) premium earnings
C) cash value coverage.
D) division of risk
Answer: All Insurance is based on a principle called division of risk.
Why all insurance is based on a principle called division of risk
If the person has lost then the amount will be shared with several individuals. It makes the loss amount very less due to sharing it with a large number of individuals. The basic principle is followed by several insurance companies. In the USA there many insurance companies that follow the division of risk.
health care companies Chicago Insurance
|ALEXIAN BROTHERS HEALTH SYSTEM|
The company are enough smart to decrease their individual burden. This principle are used world wide by insurance companies. It makes the work simple and easy for every individual. Lets think if this principle was not applicable by company. Then individual will face very huge loss in his insurance.
Top Non Health Insurance Company in USA
|Berkshire Hathaway (U.S.)|
|Ping An Insurance (China)|
|AIA Group (Hong Kong)|
|China Life Insurance (China)|
|Zurich Insurance (Switzerland)|
Health Insurance and Managed Health Care Companies
|United Healthcare ( UNH)|
|CIGNA Corp. ( CI)|
|Humana ( HUM)|
|Centene Corp. ( CNC)|
|Health Net, Inc. (HNT)|
|WellCare Health Plans ( WCG)|
|Molina Healthcare ( MOH)|
Conclusion: On this the the principle of insurance company division risk works for them. The business get huge by lowering the persons risk in insurance. The trust of the person in insurance company get increase.