Whatever activity that is carried out has some uncertainty associated with its outcome. At times this uncertainty can be equated to a risk. In this event the higher the probability of this risk occurring during the activity or process the greater is the requirement to be careful in carrying out the process. Alternatively an insurance process can be adopted to transfer the liability to a service provider that will provide financial compensation.
The other party involved in this risk management [youtube:ggWY7OPag0s; [http://www.rachelinsurance.com/health-insurance/individual-family:Health Insurance];http://www.youtube.com/watch?v=ggWY7OPag0s&feature=related] process normally charges a stipulated fee for such services. This service can be carried out in many of the areas in life with an intention to transfer the liability. Among the areas commonly included are car and health insurance options. The former covers automobile risk whereas the latter deals with personal medical expense risks.
The automobile cover policy specifically includes a number of risks. Most general are those related to damage from accidents and repair of the vehicle. There may also be cover for risk like theft in which case the insurer will replace the stolen automobile with one of equal value as indicated in the agreement.
Normally the general process involves the insured entity entering a contract with the insurer who is the service provider in this case. This policy enumerates the conditions and circumstances that will warrant a financial compensation by the service provider. This process is governed by a number of principles that must be identified for the process to be actualized.
Therefore it is apparent that various risks are handled differently and so have different cover rates. This is common practice especially in the automobile industry. Presently service providers within this industry are operating car insurance quotes online to assist clients find out what rate they can pay. The query process collects data from the client various departments like the motor vehicle and other state agencies to determine the rate.
While the underlying principles in cover scheme are the same those for automobile and health vary in that the former involves a contract between a provider and a client. The client here is either an individual or their sponsor who may be their employer. This contract will also specify the areas covered in the health policy.
In this type of arrangement the person being covered has a number of obligations. Primarily they must have a premium indicating the amount to pay for the cover. This may be accomplished by deduction coinsurance or co-payment. The plan may also highlight other factors like capitation. This is where the service provider pays a healthcare provider where the latter can treat all those covered by the service provider. This is a common practice with national health policies.
Generally health care insurance experiences several benefits. For one such a business has a guaranteed capital source from which to draw for further investments. This capital comes from the premiums by the clients. On the other hand the client is assured of cover from various risks which in turn offers them a peace of mind.
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Author: Mike GoldbergThis author has published 1 articles so far.