Something about insurance

The insurer - this is a legal entity of any organizational-legal form created for the insurance business and has obtained a license for it. The insurer is one of the two main subjects of the insurance contract. The insurer sells for a price of insurance services to clients. To this end, contributions from the insurance fund is formed, is used to compensate for damage to insured property interests of the insured.

Insurer - this is a legal or natural person capable, has entered into a contract of insurance or is insured by operation of law (in the form of mandatory insurance) and payment of insurance premiums. The insured may enter into contracts of insurance or other persons in favor of third parties. Insured is the second main subject of the insurance contract, he buys insurance from the insurer for the price of the premium.

Insured person - an individual whose life, health and working capacity are subject to insurance coverage for personal insurance. An insured person may be both the insured, if he signed a contract of insurance in respect of itself and the insurer pays the fees. If, for example, an employer has an appropriate agreement and paid contributions to social funds for their employees, then employees will be insured and the insurer - the employer. An insured person is a secondary subject of the insurance contract.

Beneficiary - legal or natural person are designated by the insured in a contract or a legal beneficiary of the sum insured (for example, in the event of injury to the insured property - in the property insurance or the death of the insured - in the personal insurance). Beneficiary is a secondary subject of the insurance contract.

The subject of insurance - insured tangible and intangible assets: property, life, health, earning capacity, liable to damage the environment.

Property interest - the notion of having two semantic values. First, the property interest is linked to the presence of the policyholder insurance (property, life, health, wealth), the insurance protection it would provide, ie, the property interest is a specific form of awareness of the need for insurance. Secondly, the property interest is defined as the sum, which is estimated damage from the loss of or damage to property. This amount and the related interest in ownership of property.

The object of insurance. The objects of insurance may be the property interests involved:

First, the life, health, disability and pension policyholder or the insured (private insurance);
secondly, to the possession, use and disposal of assets (property insurance);
and thirdly, with reimbursement from the insured for injury caused to his person or property of third parties (liability insurance).

The interest of legal persons and States in the property insurance, life, health, on the one hand, and a real opportunity to address this need by insurance companies - on the other hand, express the meaning «insurance protection». For this reason, insurance protection can be defined as a set of relations on the redistribution of damage to the property interests of the affected policyholders, among all the customers of insurance companies through an insurance fund established by contributions from insurers for policyholders.

Insurance liability - duty of the insurer to make payment of the insurance policyholder in the aftermath of the insured event occurred. The insurance contract always includes a list of insurance events, in case of attack by the insurance. This list represents the amount of liability insurance (coverage) the insurer, with more than he was, the more expensive insurance.

Insurance is a system of social relations, which is influenced by many different factors. A large number of insurance, the extreme diversity of risks in the event of under insurance, the differences in the organization of the insurance process, the use of practical activities and development of the insurance law, insurance, statistics, actuarial, insurance economy led to the formation of a specific insurance terminology. It is worth mentioning some of the complexity of conceptual apparatus of the insurance. This is due, firstly, that the same term often has a number of semantic aspects, and secondly, some terms are not yet firm, is often interpreted in different ways.

To facilitate the perception of basic insurance terms divide into four groups of conditional (conditional, because some terms can not be attributed to a particular group due to their polysemy):

• terms, reflecting the general terms and conditions of insurance transactions;
• terms relating to the formation of the insurance fund;
• terms relating to the expenditure of the insurance fund;
• terms relating to the functioning of the insurance market.

Mandatory insurance is based on the following principles.
1. The principle of obligation (automaticity) is that insurance is compulsory by law. Relevant regulations define a list of items to be insured, the list of events in the event of which the insurance, the size of insurance premiums and the frequency of its payment, the size of compensation payable, the rights and obligations of the insured and the insurer.
2. The principle of complete coverage of compulsory insurance. The essence of this principle is that insurers, which by law is responsible for insurance, must provide 100% coverage of the facilities. To do this, they hold annual inventory and registration of the insured, insurers charge in a timely insurance payments.
3. The principle of mandatory insurance coverage, regardless of the payment of insurance premiums. If the insurer has not made insurance payments, and its respective property interests caused the damage, the insurer will pay him compensation, withheld insurance premiums. In some cases, contributions may be recovered through the courts.
4. Indefinite mandatory insurance is that insurance coverage will be insured until the policyholder would be a property interest subject to compulsory insurance, or until it is repealed the law.
5. The principle of normalization liability insurer does not allow to take into account the individual characteristics of insurance and determine the appropriate standards organization to simplify the insurance process.
In the compulsory personal insurance citizens listed principles appear with some specificity. For example, the compulsory insurance of passengers clearly defined period of insurance, and implementation of insurance depends entirely on the payment of the premium.
The Treaty of voluntary insurance, as opposed to compulsory insurance, is only at the request of the policyholder. Regulatory framework in this case is the insurance legislation. The basis of voluntary insurance are the following principles.
1. The principle of voluntarism is that the policyholder enters into a contract of insurance on their own volition and not because of legal coercion. In doing so, it only insures that finds it necessary and so, for how many allow their financial capacity.
2. The principle of incomplete coverage of individuals and entities associated with the voluntary insurance that not everyone wants to insure, and have the means to do so. In turn, insurers have certain limitations when applying for insurance of various objects. So, not being insurance against accidents in disability group I, not insured buildings in dilapidated condition, etc.
3. The principle limitations of voluntary insurance to date is that the Agreement is terminated upon the expiration of the insurance or if at the time of the contract has an insurance case, in the aftermath of which the insurance amount was paid in full. Continuity of insurance coverage can be achieved only in time to conclude an agreement on a new date.
4. The principle according to the insurance protection against payment of the premium. The insurance contract comes into effect only after the payment or the first single (with contributions by installments) payments. Accordingly, if non-payment of installment, the Agreement is terminated.
5. The principle of insurance coverage depending on the willingness and ability to pay policyholder. And in the property and personal insurance, the insurance amount depends on the capacity and willingness of the insured. In property insurance insurance amount can not exceed the actual (taking into account depreciation) value of the insurance.

In addition to the classification of insurance branches, sub species and it can be systematized by forms, depending on how the involvement of the insured in the insurance process. From this perspective, all insurance is divided into mandatory and voluntary.

The initiator of compulsory insurance is the state that the relevant laws stipulate the obligation of legal entities and natural persons to insure certain property interests. In 60-80-ies. insurance accounted for half of the total amount of insurance in the country. It includes social insurance, compulsory insurance against accidents of various categories of citizens, insurance assets of state enterprises and collective farms, property insurance (buildings and animals), etc.

To date, in addition to social insurance of citizens, through state pension fund, the Fund of obligatory medical insurance, Social Insurance Fund, the main types of compulsory insurance include insurance:

• life and health of passengers by air, rail, sea, inland waterway and road transport;
• life and health of military personnel and for service;
• life and health of workers in the state security, police, prosecutors, court system, correctional labor institutions;
• life and health of employees of tax inspection, tax police, customs authorities;
• life and health of workers in fire service;
• life and health of rescue workers;
• life and health of medical staff working in mental health and providing diagnosis and treatment of HIV infection;
• life and health of workers in nuclear facilities;
• public buildings leased to religious organizations;
• Liability for damages caused by radiation exposure during the use of nuclear energy;
• Professional liability of notaries, realtors, builders, etc.;
• liability for environmental damage;
• liability related to space activities;
• Liability of owners of dangerous industrial objects;
• private homes of citizens, etc.

Types of property insurance are many and represent a specific insurance or a specific form of property ownership (eg, insurance, equipment rental, car insurance, is in personal property, etc.), or the specific hazard (such as an apartment house on fire, crops of drought, etc.). Insurance business risks will be insurance of any of the listed events.

In personal insurance, there are two sub-basis of differences in objects, the duration of insurance, which the function, as well as the impact on living standards and policyholders.

Life insurance is a case of surviving the insured person before the expiration of the insurance or death during this time. Typically, this is a long-term insurance, in which the accumulation of money (ie, realized savings function). The types of insurance there will be: children's insurance, insurance for the wedding, pension insurance, endowment insurance, for up to a contract of age.

Personal insurance other than life insurance is an insurance against accidents and health insurance. Such insurance would cover the costs arising from adverse events in people's lives. The maximum period of insurance - one year. In this case the risk is realized the function of insurance. The types of insurance are the personal accident insurance, insurance, workers at the expense of the enterprise, compulsory insurance of passengers, insurance, traveling abroad, etc.

Endowment insurance is a joint accident insurance, as well as insurance for endowment to the termination of insurance or death during this time. Types of insurance is depends on what kind of a combination of life insurance, accident insurance and health insurance would be insured.

On the impact on the lives of citizens and insurers can provide the social and commercial insurance. In social insurance are insured employers and the state to ensure a minimum, the vital protection of citizens. The types of insurance in this case will be compulsory health insurance, public pension insurance, social insurance and unemployment insurance. Social insurance is compulsory.

Hiring a commercial insurance and the types depend on the willingness of insurers - individuals and legal entities. The level of insurance coverage is determined by their financial capabilities.

In liability insurance to the sub are:
• liability insurance;
• professional liability insurance.

Liability insurance protects the property interests of legal entities and individuals arising from their obligation to repay the harm property, personal or moral interests of third parties. The types that are sub-owners liability insurance of motor vehicles, liability insurance of owners of sources of increased danger, liability insurance for pollution liability insurance carriers, etc.

Professional liability insurance is the protection of property interests arising from the need to recover due to the performance of professional duties harm the interests of third parties. The types of insurance in this case are the professional liability of doctors, lawyers professional liability insurance, professional liability insurance realtors, professional liability insurance of notaries, etc.

A more profound difference in the facilities to allow the insurance within the relevant sub-sectors.

Property insurance can be classified, on the one hand, the forms of property ownership and the characteristics of the insured, on the other hand, based on risk. Based on the first criterion, the following:
• insurance of public property, in which insurers are the relevant government authorities;
• property insurance companies, formed on the basis of equity or share capital, which are insured by the enterprise;
• insurance of property belonging to private entrepreneurs, who are insured;
• insurance of the leased property, insured by the lessees;
• property insurance citizens.

Based on the risk of property insurance is divided into:
• insurance of various assets (industrial, domestic, public, etc.) from fire and other natural disasters;
• insurance of various assets (including vehicles) from theft, accident, theft, etc.;
• insurance of animals from the case and forced the slaughter;
• insurance of crops against drought and other natural disasters.

A special sub property insurance is insurance of business risks. Under the Civil Code, in which case the insurers fully or partially cover the loss of business due to a breach of the obligations counteragents entrepreneur or a change of conditions of this activity, for reasons of the entrepreneur, including the failure of expected revenue.

For property insurance include insurance of property interests of legal and natural persons associated with material values, such as:
• Miscellaneous;
• Income (loss) from the property or potential monetary costs associated with civil liability for injury to other legal or natural persons (including for breach of contract).

Act in addition to property and life insurance provided as a separate branch of liability insurance. Liability insurance is an insurance of the property interests of legal persons and natural persons for the recovery of the damage caused by the tangible and the intangible values of a third party, such as:
• Miscellaneous,
• life, health, disability;
• losses due to damage to health, personality, or the inability to make full use of assets (including for breach of contract).
Consequently, liability insurance and property protection, and personal interests, and more logical to his selection of property insurance in a separate, independent branch.

The variety of insurance, insurance agents, forms of insurance leads to the need for their management. To solve this issue could be through the classification, which is a way to streamline the components of a system, and identification of their reporting arrangements.
So far in the theory of insurance and regulations governing this area, not a single approach to the classification, but the starting criterion in all cases are subject to insurance. It is the differences in facilities to allow the insurance industry.

The Federal Law «On the organization of insurance business in the Russian Federation» states that the object of insurance may not be contrary to the laws of any property interest. Property interest arises from the owner of property in connection with fears for his safety or the person in connection with the desire to at least to some extent compensate for the risks to a certain level of wealth, life, health, disability himself or his loved ones. Property of interest arises, therefore, with respect to a particular subject of insurance (property, life, health, welfare). And some of the insurance has real value, while others - not. From this point of view of the Civil Code provides two branches of insurance: property and personal insurance.

Personal insurance is the insurance of property interests of individuals associated with the level of their lives and intangible property, namely:
- Life, health, disabled people;
- Income (additional cost) which determine the level (quality) of life.

The essence of insurance is reflected in it. functions. The main risk is a function. First, the risk of potential injury to property interests, is the basis for the existence of insurance and, secondly, in the function of this mode of damage occurs between the insured and the payment of insurance compensation to victims.

The second function of insurance - a warning. Some insurers are insurance premiums for the formation of the funds of precautionary measures aimed at reducing the likelihood of insurance claims and reducing their consequences (eg, the acquisition of the insurer to the policyholder for insurance of fire extinguishers from a fire).

Formation of monetary savings to ensure a certain level of prosperity or improvement is carried out in the third - a savings function of insurance.

The three listed are the main features of insurance. In several works on the theory of insurance is made reference, credit and investment insurance functions. The meaning of the control function is to strictly target the formation and utilization of the insurance fund. Implementation of the control function is performed through the control of the legality of insurance transactions. Repayment insurance premiums in the insurance types of storage pulls together its category credit. The use of temporary free funds of the insurance fund for the receipt of additional income is the investment function.

To date, only insurance against the possible events, ie these events, about which previously could not know for sure they will happen or not. Events, which is known in advance that they will necessarily occur, or, conversely, will never happen, not the insurance.

Insurers, given the likelihood of any insured event, as well as data on the number of objects in a single occurrence, the average amount of damage and, consequently, the average size of payments to determine the amount of premiums paid by insurers.

Through these contributions, insurance funds are used by insurers for payment of compensation in the event of damage to insured property interests of the insured. Therefore, the insurance fund is an instrument layout, the reallocation of loss among insurers. But the redeployment is not just between insurers. Damage can be redistributed, and in time. In a more quiet periods of insurance cases occur less, which allows the insurer to reserve funds and use them to compensate for the adverse years. But in any case there is a repayment of funds raised by the insurers in the insurance funds. These funds, minus the overhead costs of insurers, are returned to policyholders in the form of insurance payments. However, the implementation of this feature of the insurance activities carried out in different ways in storage and risk types of insurance.

For events for which at present are the insurance contracts, include:
1) damage or destruction of property insured;
2) damage to life and health of the insured;
3) causing damage to the insured property or the life or health of any third party;
4) endowment until retirement age;
5) endowment policyholder before the contract of events, or age.

Insurance of the first three groups of risk relates to risk insurance. Insurance of the fourth and fifth groups, the risks are cumulative.

All types of commercial relationships based on the equivalence of the binding and transfer of goods or services for cash buyer. In insurance, these principles appear sufficiently specific. In the short-term or risky forms of insurance an insured person, payment of contributions, may not receive insurance services in the form of insurance payments, if time does not happen is an event for which the contract was made. Do not be returned to the policyholder and the insurance premiums paid by them. Materialization guarantee is made only for the affected policyholders. In other words, the insurance company may be a year to insure 10 OOO people, and insurance services actually receive only 50 Moreover, the insured, paid at the conclusion of the contract, such as 5% of the sum insured when the insured event may receive compensation in the amount of 100% of the value of the insured property, ie in the risky types of insurance in the relationship between the insured and the insurer has no self-equivalence.

Insurance equivalence in this case is that all of the premiums (net of overhead insurer), received from customers for the tariff period (say, over 5 years) will be paid during this time, but only the affected policyholders. The basis of insurance is based on the joint venture mode of damage.

In the longer accumulating types of insurance relationship the insured and insurer are always equivalent. In this case the insurer required to obtain insurance payment in one form or another, but the insurer must provide the appropriate amount of savings for each concluded contract. Form can be, first, to obtain contributions from insurers and, secondly, by investing the proceeds in directions determined by the state. Money, «work», yield revenue that will allow the insurer to reduce this amount, contributions insurers.

Thus, insurance can be defined as a set of re-cycle the participants about the formation through their contributions of insurance trust fund designed to compensate the possible damage to property of legal persons and natural persons, as well as for maintenance of citizens with certain events in their lives.

Insurance has a long history and relates to the fundamental categories of money, credit, taxes. At present, insurance is a way to compensate the damage caused by the owner of wealth as a result of natural disasters, accidents, fires, earthquakes, robberies, etc. These developments are in violation of the normal period of human life and are characterized by their sudden and unexpected.

Naturally, any owner, any person interested in the preservation of their property, life, health, and would like to be able to compensate for the damage when the insured event. This interest was the subjective basis of insurance. The process of interest in insurance can be schematically represented as follows.

Protect yourself and your property a person can, by creating reserves and provisions in one form or another. But to ensure the same standard of living, or, say, produce the same amount after the onset of any adverse event (eg fire), these reserves and the reserves should be on their volume equivalent to what is used in production. In this situation, could not escape the idea of interested persons to be joint and several layouts damage - compensation for loss of one or more of the affected joint efforts. Moreover, experience shows that the number of victims of natural disasters, accidents, theft is always less than the number of fear of adverse events. This once again confirms the benefits of shared layouts damage between the parties. And the more of the participants, the smaller the proportion of funds that each must make to compensate for the loss of the victim.

It should be noted that the joint mode of damage is always a vicious nature, as well as losses can be obtained only party of interested persons.

In a closed joint and several participation of stakeholders in the compensation of the negative developments of the affected members of the original meaning of the insurance. It is in the form of mutual insurance, where members of association are both insured and insurers, has insurance in the early stages of its development. Insurance Fund at this time are usually not formed, and in case of adverse events members of the collaborative effort to assist victims. In the course of further development of insurance and making it into the primary business, the initial signs of Insurance (the existence of insurable interest and closed the joint mode of damage between the parties) have been supplemented by other specific features.