The insurance principle is based on the law "„of the large "“numbers, which is called the fact that in individual cases not foreseeable risk entrance and not before the assignable need at means for a larger whole by homogeneous risks of the concerning calculable sizes becomes.

An insurance contract is locked, around certain not risks foreseeable for the individual case (e.g. Requirements for liability to transfer accident or the operating interrupt) by payment from premiums (or also contributions) to an insurance company thus on a risk or also solvent bad A SHANk.

The height of the risk portion contained in the contributions is statistical determined after statistic bases over average damage frequentnesses and average extent of the damage.

The risks are converted by the premiums into costs and thus for the insurant calculably. Thus the economic consequences for the insurant are within limits held and an otherwise necessary individual risk reserve is replaced.

Articles in category "Insurance principle"

We found here 12 articles.

Related Websites

We found here 5 related websites.

• Glossary Insurance Principle Term insurance average
  Glossary and Insurance Principle for Term insurance and average for investor and stock.


• Insurance - Wikipedia, the free encyclopedia
  This is a basic principle of insurance and must be followed for insurance companies or groups to operate properly, even for non-profit organizations. ...


• Insurance principle financial definition of Insurance principle ...
  Definition of Insurance principle in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Insurance principle


• Principal.com - 401k plans, mutual funds, insurance, investments
  The Principal Financial Group is a nationally known provider of 401k plans, mutual funds, retirement plans, investments, life insurance, health insurance, ...


• rbc.com - RBC Financial Group - Royal Bank Letter
  53, No. 4