Insurance rate and its functions

The insurance rate is the rate of contribution to the unity of the sum insured or the insured object. With the base rate determined by the value of the premium that the insured has to pay in the insurance contract. To do this, the value of the tariff rate is multiplied by the sum insured specified in the contract.

For some types of insurance (insurance of passengers from accidents, vehicles, animals, and a few others) wage rates may be established with the object of insurance.

In particular, the insurance rate is determined by the passengers with a passenger, vehicle insurance rates can be set based on the brand of vehicle insurance animal - a species of insured animals. Moreover, if only one object is insured, the insurance premium equal to the tariff rate, and when there are many objects, the insurance premium is determined by multiplying the base rate by the number of objects.

What is an Certificate of insurance

Certificate of insurance - a document issued to the insured person, confirms his registration of the pension insurance of the country.

It contains the account number, which is open to the person in the Pension Fund. When hiring, employment or contract agreement one must submit to the employer a certificate of insurance, that he was able to provide information to the pension fund of the individual employee.

What is an Insurance Premium

Insurance premium - is the amount of money charged by the insurance company to actively cover potential losses. The amount that a person pays in the form of bonuses, also sometimes called the rate is determined by several factors, including age, health status, region, etc. The premium can be paid annually in one payment or split during the year on some payments. In some cases, the amount of premium may change over time. When the premium is not paid, the insurance policy shall be void, and the insurance company will not comply with the terms of such agreement.
What is covered by the insurance premium

What is the insurance function

Insurance functions are external forms that identify characteristics of insurance as part of the (sub) financial system. The economic essence of insurance is embodied in the functions that reflect the reality of the social purpose of this category.
Distribution function of insurance sold through specific functions peculiar only to insurance: Risk, helpful and savings.

What is Insurance market

The insurance market is an integral part of the market economy. The concept of the insurance market is considered in two aspects. First, the insurance market is a special economic area of ​​monetary relations, where the object of sale is a special commodity - insurance protection (insurance services) and which formed the supply and demand for it. The market provides an organic relationship between the insurer and the insured. Secondly, the insurance market is a complex integrated system of insurance and reinsurance companies (insurers), to carry out insurance activities.

What is reinsurance?

Reinsurance - a system of financial and contractual arrangements under which the insurer of the responsibility for its commitments to the policyholder passes on agreed terms to another insurer.

Reinsurance emerged with the rise and development of the insurance. Feature of reinsurance is that the reinsurer does not enter into the economic and legal relationship with the insurer - is a function of the insurer. The insurer is not obliged to inform the policyholder of the intention to transfer to reinsurance fully or partially taken risks. However, despite the conclusion of a contract of reinsurance, the insurer remains liable to the insured for the compensation of possible damage in full, for it is a direct or first insurer.