 Ive had auto insurance in my own name for 2 years and ive payed it every month in full and on time? |
| now if i were to try and get a loan for a new car would that help as far as credit or anything? like if they ran my social securiy number and name would they see that i have good bill payment history?... |
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 Is and insurance companey responsible for providing a rental while repairs are being made? |
| i had a furniture truck back into my car and need to bring it to be fixed , yet the insurance companey of the people who backed into me will not pay for a ... |
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 Is a persons spouse entitled to a life insurance policy no matter who is named as the beneficiary? |
| my husband has a life insurance policy but his mother is the beneficiary.........am i entitled to any of that?... |
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 Am I still covered by my employer? |
| I recently left my job and I was wondering if the insurance company has to contact me to inform me that my coverage is no longer valid or should I assume that it no longer exists. I can still sign ... |
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 How can i sue my auto insurance co. for paying out a fraudulent claim? |
| they paid $75000 on a claim that they did not find anything wrong .I did not get a ticket for the accident and the person was not touched or hit or anything at all happend to him . Only thing that ... |
|
 Do most standard home owners insurances cover sewer line breaks (not sewage backups)? |
| I see a plethora of information out there, even in my own policy, that makes it clear that sewage backups are usually not covered. However, I do not have a backup. I have a sewer line under my ... |
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 Has anyone had a problem with State Farm Homeowner's insurance? |
| Everyone in our neighborhood got a new roof after the last hailstorm, but we didn't. There was a special on our news about State Farm denying most of their customers new roofs. Anyone else have ... |
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 Am I being charged too much for insurance? |
| For my car insurance I am being charged about $260 a month. I have full coverage with a $500 deductible on an 06 Honda S2000, I have no tickets or accidents on my records, and I am a 20 year old male.... |
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 Term Life Insurance? |
| If I purchase a 10 year 'term" life ins policy in 2007 and get married in 2011, what will be my options ,if any at that time?... |
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 Is pre-paid legal a scam? Pyramid scheme? |
| I have a friend that is really into PPL, she thinks it's her saving grace. She is trying to get me to beleive her religious based scam, and signed on. What's up with this?... |
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 Medical Insurance-Blue Cross? |
| If I'm five months pregnant, can I purchase Medical insurance, right now? Would I be denied due to being pregnant?... |
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 WHY won't insurance companies sell health insurance to a woman who is already pregnant? |
| She may break a leg or get bronchitis, which would have nothing to do with being pregnant. Am I wrong, is there a company who would sell to her before the baby is born, as long as she understood that ... |
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 I need help getting cheap insurance? |
| I need help, anybody has a cheap insurance company that offers just the state requirements, all I need is state mininum, please offer suggestions, thanks!!! If it helps you at all, I'm in S.F... |
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 I was injured at a business - how can i receive compensation? |
| I broke my wrist at a local business (they had uneven concrete on a outdoor padio)- what can i do to get compensation?... |
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 I tore my acl playing basketball. i need to miss 6-8 weeks of work. Am i still entiled to a paycheck? |
| Ive been on the job for 5 months and was promised health insurance after 2 which i never recieved. Now Im hurt and can work for 2 months. Do I still get paid? Is my employer responsible for my ... |
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 What is the age limit for a son or daughter to be covered on health insurance? |
| Several years ago I recall the news reporting that children could be carried on their parents' health insurance through age 25 without proof that they were a student. My son is a student, but I ... |
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 Why do doctors treat you badly if you don't have health insurance? |
| i went to a dermatologist and she didn't seem to care about the problem i had. she didn't even prescribe me medicine for it. she let the nurse do everything and i was charged a lot of ... |
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bamer71 | How do insurance companies make money? |
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DFW Broker
|
Mutual companies technically do not make money as they are designed to distribute excess cash reserves in the form of dividends to their shareholders which are they're policy holders. It is a mutual company as everybody is mutually self insuring.
The majority of companies are stock companies and many have demutualized in recent years.
All of the companies are seeing a much higher level of their profits come from underwriting gains as opposed to investment gains which is why you hear so many people complaining about Homeowners rates skyrocketing and health and auto companies denying more claims.
By their nature Investment by insurance companies must be conservative so returns on investment only are below par for the taste of most wall street people and that is driving the tightening iin underwriting, so that the insurance companies can meet their quarterly projections. |
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TedEx
|
2 ways
Underwriting income and investment income.
Underwriting income comes from carefully reviewing risks and charging enough so they can pay claims and still have a bit left over (profit).This wouldi nvolve the usual claims which happen every day,,such as fender benders.
Investment. Companies set money aside for the big claim which might or might not happen,,,(Katrina) These funds are invested, mortgages, cd's, etc etc so they earn money until needed for a claim.
It is not unusual for a co to have an underwriting loss, but an investment profit, or vice versa. |
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MTR
|
Usually with investments. They don't make money on the premiums charged by letting the money sit in the bank |
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Miss Know It All
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Whenever you buy a policy and pay your premiums they invest that money and earn money from it. Also, out of 50,000 people that pay premiums for coverage only about 500 actually make claims and get cash! |
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rhsaunders
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By charging more for a policy than the risk of carrying it. Money is also made by investing received premium payments until a covered loss occurs. |
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Pearl
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You are given a policy and have to pay it monthly.. the company invests those money and assume the risks. You are given also a certain sum of money in case you die meanwhile....your family may get it LOL not you |
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topcat
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They invest the premiums |
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HC Investigator
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dont forget the other insurance companies out there that do not make a profit..... i work for an employee sponsored self insured group health plan. of course, we are the minority out there on insurance plans, only serving our employees, paying their claims. contributions by the employee are minimal. no underwriting, no union, no other Insurance carrier or Plan to make our decisions. just our company. Our funds are from a trust that both the employees and the company put money into.Federally mandated and governed by ERISA. in a nutshell, we do not make a profit at all. but like i said, we are the minority. |
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Custo
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You pay them your money, through premiums. They invest that money & make it grow. Then pay the profit from investments out in claims. Its a bit more complicated, and there are all kinds of formulas & guidelines; but that's the basic flow of things. |
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mbrcatz
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Most of the time, profits are made by investment income from the reserves and premiums they have collected.
That's why companies can charge you rates LESS than the actual rates needed to pay claims - they subsidize with investment income. |
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