Table of Contents
Insurance Short Form
The insurance short form is Ins.
Insurance is a contract whereby, for a consideration called a premium paid as agreed upon by both parties, one party (the insurer) agrees to indemnify the other party (the insured) against loss from certain specified contingencies. There are three major classes of insurance contracts:
- those that indemnify against all financial loss arising from a particular event or contingency
- those that provide compensation when specific human death, illness or injury occurs and
- those that pay benefits if a specific property is damaged or destroyed by fire, theft or other perils.
The first type is generally known as life insurance; the second as health insurance; and the third as property insurance. Other types of insurance include marine, casualty (including automobile), fidelity, and surety.
Insurance is a way to spread risk among people who are most likely to be affected by it. For example, individuals may buy car insurance for the same reason that an insurance company might buy automobile reinsurance. It’s also possible that one individual might own several cars and be involved in several accidents over time. That individual would thus need more than one auto policy to protect him against all the financial consequences of accidents involving his different cars.
To whatever extent automobile accident costs can be distributed among many individuals instead of falling on just one alone, any given individual has less incentive to avoid driving recklessly or carelessly or without due caution—and thus every other person who uses the roads is somewhat safer than he or she would be in a world where insurance is unavailable.
An insurance agent gives advice to customers and markets the policies of insurers. An insurance agent does not sell the product; the insurer’s representative does this. An insurance agent explains coverages, discounts, and other details about policies to prospective buyers and their employers. He also helps clients choose the best types and amounts of coverage for their needs and budgets.
Many individuals work as part-time agents to supplement personal income or provide additional employment outside another occupation they hold full time, such as teaching or coaching. Others have turned being insurance agents into a career to support themselves completely through selling insurance plans rather than working at another job.