What is Co-insurance?

by Don Sterling on August 18, 2011

Coinsurance is also sometimes used along with the term copayment, but has different definition. A copay is normally a fixed charge while coinsurance is a percentage owed by the insured person after the deductible has been exceeded. It is usually written with the insurance companies percentage stated first. With co-insurance, 50% is generally the maximum amount in which the insured is responsible. Once you have paid your portion of out-of-pocket expenses, the insurance company will become responsible for 100% of any additional costs. Typical co-insurance plans are 90-10, 80-20 and 70-30, with stop losses of $1000 to $3,000 after which the insurance company will pay all expenses.

What is an Insurance Claim?

by Don Sterling on August 14, 2011

An insurance claim is a request to an insurance company requesting payment based insurance policies terms. Insurance companies review insurance claims for their legitimacy and then pay the insured or other party requesting payment once the insurance claim approved.

Insurance claims cover everything from life insurance death benefits to regular visits to your doctor. In many cases, insurance claims are filed on behalf of the insured person by a third party, but generally the person or persons listed on the policy are the only ones that can be paid out on the claim.

What is Casualty Insurance?

August 14, 2011

Casualty insurance is frequently associated to liability insurance and describes an area of insurance not directly connected with life insurance, health insurance, or property insurance. Defining casualty insurance exactly has become an issue recently with the increased popularity of multi-line insurance policies. It is typically used to describe the liability coverage of an individual or [...]

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What is the Definition of Capital for Insurance Companies?

August 14, 2011

Capital is the shareholder’s equity (for insurance companies that are publicly-traded) and retained earnings (for mutual insurance companies). Capital adequacy is the amount of required money that the insurance company must maintain based on the insurance company’s level of risk. These risks include asset depreciation risk, credit receivables risk, underwriting risk, and off-balance-sheet risk. There [...]

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What is a Benefit Period?

August 14, 2011

The benefit period is the period of time during which the benefits of an insurance policy is paid to the insured. Health insurance and disability insurance have a benefit period. The benefit period is defined in each program or policy’s guidelines. The benefit period varies from policy to policy but it is typically a calendar [...]

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What is a Balance Sheet?

August 13, 2011

In business, a balance sheet is an overview of the financial balances of a company, sole proprietorship, or a business partnership. Balance sheets are also known as a statement of financial position. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet [...]

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What is Automotive Liability Coverage?

August 13, 2011

Automotive liability coverage is the insurance for damage you may cause to other persons or property while driving. Automotive liability coverage (most often called “liability”) protects you from damage you do to others or to property in an accident. Auto liability insurance coverage is required in all 50 states to some level. Automotive insurance liability [...]

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What are Assets?

August 12, 2011

Assets are financial resources. Anything that is either tangible or intangible and can be owned or controlled to create value and is also held to have positive monetary value is considered an asset. Assets represent ownership of value that can be converted into money (although cash itself is also considered an asset). Assets are either [...]

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What is an Annuity?

August 12, 2011

An annuity is a contract created when a person pays a life insurance company a single premium that will be distributed later to the person over a period of time. Annuity contracts typically distribute a guaranteed amount of income over a period of time, until the person’s death or persons named in the contract or [...]

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What is an Annuitization?

August 12, 2011

Annuitization is the process of converting an annuity investment into a series of recurring income payments. Annuities may be annuitized regularly, over a short or long period of time, or in some cases, it may be paid out in one single lump sum payment. The investment has been annuitized after an annuity has been through [...]

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