0
Is there a co-op auto insurance where the only time premiums are charged is when the company has claims to pay out?
Wiki User
∙ 19y ago
If there were, it is certain they would have more business than they could handle. Obviously the answer is no> There is a way to do this, but you would have to talk to an attorney and essentially start your own small insurance co-op that generally is still regulated by the state. It may even cost you more in the end, due to the legal paperwork and fees involved. But yes, if you really wanted to, you could put a large sum of money in an account for what is called a "reserve" of just in case money. Then when each member of the co-op has a claim, they pay higher amounts until they replace all the money that they have taken out. Be careful with this type of insurance, because if you pick the wrong people to allow in the co-op and they have a large claim, but can't afford higher premiums, the other members of the co-op must pay the difference if they wish the co-op to remain in business. In short...Talk to an attorney.
Wiki User
∙ 19y ago
Add your answer:
Earn +20 pts
Why does the insurance company get paid back the money Isn't that why we pay our premiums?
You pay premiums because insurance companies are a business and they are there to make a profit. Also, the premiums you pay go into a pool of money so the insurance company can pay out claims when necessary.
How is ratio calculated?
Loss Ratio in insurance is the ratio of total losses paid out in claims plus adjustment expenses divided by the total earned premiums. If an insurance company, for example, pays out $60 in claims for every $100 in collected premiums, then its loss ratio is 60%.
How is loss ratio calculated?
Loss Ratio in insurance is the ratio of total losses paid out in claims plus adjustment expenses divided by the total earned premiums. If an insurance company, for example, pays out $60 in claims for every $100 in collected premiums, then its loss ratio is 60%.
What happens to your deductible or premiums if you have accident claims?
In order to know the answer to this, you would need to contact a custumer service representative at your insurance company.
Where does insurance claims money come from?
When you get insurance on a car, a house, a boat, you pay the insurance company money, known as premiums. The insurance company invests that money. When there is a claim, some of the premium, along with some of the interest from the invested money, is used to pay the claim.
How does a life insurance company make money?
A well run life insurance company makes money in two ways: from underwriting profits, which is the excess of premiums paid in minus losses paid and by investment income, which is the money earned on premiums that have been invested before they are used to pay claims.
What are some strengths weakness of an insurance company?
The strengths of an insurance company are that they have so many resources at their disposal in form of premiums paid by clients. As for the weaknesses, there may be times when claims may be more than what has been collected which might drain the company financially.
What percentage of auto insurance losses are used to determine premium?
All auto losses are used to determine premiums. All claims paid plus expenses of the company are added up to determine if the insurance company has a profit or a loss. Auto insurance companies usually try to break even on underwriting of auto insurance policies. If they can break even on the insurance then they will usually make money on investing the premiums and be profitable for the year.
How does an insurance company benefit from insurance?
When an insured purchases an insurance policy they pay the insurance company money for the insurance coverage. This money the insurance company collects is called insurance "premiums". The insurance company, using the law of large numbers, collects more money in premiums than it pays out in claims. The insurance also makes alot of its money by taking the money earned from premiums and then investing it. As we all know that Life insurance policy cash values are accessed through withdrawals and policy loans. However, withdrawals are taxable to the extent they exceed basis in the policy. Loans outstanding at policy lapse or surrender before the insured's death will cause immediate taxation to the extent of gain in the policy and hence benefits the company.
Who can fund gmac insurances?
Whoever chooses to buy GMAC insurance pays the premiums, and GMAC insurance would use the premiums to in turn make sure they had the funds to pay out for the people who made insurance claims.
If you want a settlement from workers comp does the money come from your employer?
Workers compensation is an insurance. Your employer pays a premium during each billing period (monthly, quarterly, annually, however frequently) for coverage. This works just like any other insurance business: the insurance company will pay for covered claims. Claims may cause the insurance company to raise premiums if they feel the business has become more of a risk.
What does the insurance company do?
Insurance company claims to support you financially at time of crisis.. You can invest in all the plans like life insurance,health insurance,auto insurance,travel insurance etc and in return insurance companies supports you financially through premiums at the time of mishappenings.. But there are many insurance companies now so its always upto the customer to compare all the policies online and then choose the best..
