 Mortgage protection insurance? |
| hello, i just took out a mortgage but didn't get insurance with the lender (C&G). I understand this is compulsary, so what options do i have now? i know i can just get a standard life ... |
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 My wife is leaving her teaching job and becoming an independent consultant.? |
| She will rely on my health care for now. If I too was to pursue independent contract work, what options do we have to ensure we still have quality health care since we would no longer be covered ... |
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 I have a standard Homeowners Insurance on my house. My crystal bowl was broken when in use. Am I cover? |
Does a standard homeowners policy in the U.S. only cover loss suffered from perils only?
Additional Details
Wow, a lot of great answers! Well, from the majority of it it would appear ... |
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 Life insurance questions? |
| I was signed up for a life insurance policy with my previous job, but I no longer work there. My husband has no life insurance at all. We just had a baby, and I'm really wanting to get life ... |
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 Whole Life Insurance? |
| I am from overseas and as i was growing up my parents signed me up for an insurance where 10 or 20 years later we had the option of getting the money. Is there a such insurance in the United States. I... |
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 What Life Insurance Company will let you buy a policy for your parents and pay for it yourself? |
| What company will just require a paper filled out by the parent giving the child permission to get life insurance?... |
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| i am trying to avoid taking my ex to court to have him produce a copy of his court ordered life insurance policy. is there a way to obtain a copy of the policy if I know the agency name?... |
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 House Insurance -- Big problem - need advice!? |
| My wife and I own a house and are trying to obtain a new Homeowners insurance policy. You see, we've lived here for 2 yrs and were robbed 2x in the first 13 months...We since installed a GOOD ... |
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 Health insurance for poor people in the USA? |
| Is there any health insurance available for people who cannot afford to spend at least $300/month?... |
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| If I include my daughter on my auto insurance if she getst into an accident with her car ? |
| If I include my daughter on my auto insurance if she getst into an accident with her car and the car is included on my policy too, would my insurance price go up for me or only for her car?... |
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| What do I do if I dont have health insurance but I really need to go to the dr.? |
| I have applied for assistance and was denied because my boyfriend makes too much money but we can't afford $900 a mo. for insurance because of a pre-existing condition. I have had problems with ... |
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Answer R | What's the point of insurance? |
I mean like, yeah you should have some money set aside for if your house gets burnt down etc, but why should you have to keep it with a private company who might go bankrupt at any moment? |
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mbrcatz
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Well, except for car insurance, you don't. Oh, unless you BORROW money to buy your house, then the BANK requires it, to protect their interest. |
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bearmeister34
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Wow, this is a big question, going to the basics of the laws of large numbers.
By pooling our money to promise all of those people who contributed. We can pay much less individually to ensure that there is money available for the person that has a loss. If you try to do this individually, it is not possible. It only becomes a possibility with larger numbers.
Insurance companies do go bankrupt, generally from bad underwriting. In other words they accept risk but don't collect the appropriate premium for the risk they take on.
When an insurance company goes out of business, there is either a state agency that comes in and takes over (like citizens) or the other insurers will take their proportionate share of the policies and pay any outstanding claims for the now defunked company.
I don't know of a single company that has gone out of business and the claims not been paid, by someone.
Insurance is a service that provides security to people with tangible goods. This service is not possible without pooling resources to make it possible to pay claims. |
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President, www.HSAInside.com
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Health Insurance Companies are regulated by the Insurance commissioner in your state. To open a insurance co. a company must have reserves to pay claims, and thus cannot as you say get burnt down. If in fact a insurance co. would go bankrupt the insurance commissioner would step in and place your account at a company that is still in business.
As far as purchasing insurance, here is the bottom line- it is a financial instrument. What this means is that people who buy insurance are protecting assets. If a person has no net-worth and makes no income I would recommend that they do not need any insurance. But if they have any networth at all, any credit earning money they like 90% of americans purchase insurance, in order to protect you in the event of an accident. |
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Wyleeguy
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Insruance companies are required by law to be able to back their policies. Can you site an example where a company has collapsed and not paid claims? |
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Papa John
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You are protected by the state against that. Our Insurance co. went broke here in FL. Another company picked up the policies. How much money are you able to set aside in case your house burns down? You don't have to have insurance on your house, Just don't have a mortgage. The insurance is also protecting them. How many people would walk away from their mortgage if their house burned down and they didn't have insurance? How much $ will you set aside in case somebody gets hurt on your property or if your dog bites someone. Think about it. |
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Dr. Obvious
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Insurance companies effectively pool money. If your house burns down and you need half a million dollars to replace it, the monthly payments you've made to the company will add up to replacing your house, and those payments would not have added up to half a million dollars. If you made enough money to save half a million, you probably would be living in a house worth several million. Plus, re insurance company going bankrupt at any minute: insurance companies are heavily insured. |
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drlove
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insuranc company is legally use for protection, my neighnour car get burn down,, accident
accident happens, that is why insurance company is there...
insurance company is safer than private savings |
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cajun24
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Rest assured that you're probably still covered. Almost every state has a "guaranty association" or "guaranty fund" that handles insurance bankruptcies much like the FDIC handles bank failures. Guaranty funds pay your claims up to a certain limit, usually $300,000 for home, auto, and life insurance policies, if your insurer goes belly-up. That level of coverage is more than enough for the average person's insurance claim.
Thank God in most cases you won't be burdened with tons of paperwork if your insurance company has gone bust. A defunct company will send you a letter soon after it has been placed under regulatory control, and you also will be contacted by the insurance company's rehabiltator and your state's guaranty association. If your company does not notify you of its insolvency, you can call the company, your state guaranty association, or your state's department of insurance (DOI) for instructions on what to do. The DOI always will give you exactly what information you need.You will receive forms and documents in the mail that you should fill out and return according to the instructions. These documents will also give you forms to help move your policy to another insurance company.
While state guaranty funds try to pay claims as quickly as possible, payments might be made more slowly than usual if the court system gets involved in the administration of the liquidated company.
The one thing to remember is that the Insurance Companies that provide you with insurance, has insurance on themselves for this specific reason.
Companies always always have to have the necessary funds to back their policies.
Plus, if there are no funds, the company will start to liquidate it's assets. |
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C R
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Well, actually you don't have to buy insurance. You can be self-insured, not a bad idea if you have enough money to cover things, or nothing to lose.
The process of making the decision to insure or not is called 'Risk Management.' You assess your risk for financial loss and decide whether or not to bear the burden alone should something catastrophic occur.
Many large corporations self-insure for all of their potential losses. They have a Risk Manager to evaluate things and often hire insurance companies or other agencies to administer their self-insured programs. Claims and damages are paid out of their own pockets.
Most state agencies require you file a financial responsibility bond to prove your ability to pay in the event of an auto liability claim. Mortgage companies and lienholders require insurance, but if you own things outright, you can self insure.
It simply means you pay it yourself. |
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sgp714
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A private company that goes bankrupt will have to divert the accounts to other companies...that's the law. However, I don't know of many insurance companies that go bankrupt. |
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jamielynn3517
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Personally I would go with a big comapny cuz the little private ones always try and rip you off!! |
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