How insurance company works and how they make profits?
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Insurance companies have underwriting income and investment income.  \n\nUnderwriting Income - They charge more in premiums than they pay out in claims and expenses.\n\nInvestment Income - Insurers invest unearned premiums and claim reserves to generate investment income.
654271
The allowed amounts vary from state to state and insurance company to insurance company.
706532
Ya know, I typed out a HUGE answer to this about what the results of each of these ideas would be, but then had a big fight with my husband, and he closed the window before I could send it. \n\nSo the short of it is, the companies can't make any money under your ideas, as claims are too high, so they'd all stop doing business in Florida - not just homeowners, but ALL business.  So that would make the overall insurance situation WORSE. \n\nThe REAL problem is, the insurance claims are increasing dramatically, making it really, really expensive to want to insure a house (from the company's point of view) in Florida.   Losses are up.  When losses are up, you can't legislate payouts down, which is the only way you'll get premiums down!!
1004850
google them.  Just be aware, the company is going to make money off you.  This means you may well end up with a lot less than if you stick to the income stream you have coming.\n\nOh...they buy settlement contracts like annuities and lawsuits.  They do NOT buy social security income streams because they have no guaranteed payout (plus I'm pretty certain that would be illegal).
795324
Insurance policy is a service only. But it is also to gain profit. They estimate the average life time of the citizens and then only fixing their premium for life insurance. But there is also risk in it. There is a popular investment principle "Largest expected returns are associtated with riskiest ventures"
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I've been a health insurance broker for about 20 years.  Brokers in almost all US states get paid commissions that do not affect the cost of their clients' policies.  This is due to state regulations.\n\nIn another words, the policy costs the same whether the client buys from the broker or from the company.\n\nCommissions are usually a percentage of the monthly premium the client pays.  I work with all the Connecticut non-group health insurance companies and the percentage ranges from 7% to 25%.  One company pays a flat fee of $17 per month per contract.  \n\nThe companies that pay higher first year commissions ususally pay less in the second and subsequent years than they do in the first year.\n\nIt is a good business, but it is a lot of work.  You get a lot of technical questions so you have to know your stuff.  Also there are no big commission cases at least not if you focus on individual sales like I do.  However, every month or every quarter, you will cash slightly bigger checks.  Eventually you wil have a good income if you work at it.\n\nIf you are planning to come into the business, good luck (unless you are planning to compete with me in Connecticut - just kidding there are plenty of clients to go around).  Study hard; work hard; work with integrity and you will gain many new clients and friends.\n\nIf you want to find out more about me visit my website.  See below:
1130522
The first step is to research the different insurance companies in your area.  Some companies only allow you to write their insurance (captive) and other companies allow brokers to write it.  You may want to start an independent agency.  This way if one company's rates go up you can rewrite your customers with a different company.  \nHere is some good resources:\nhttp://www.findlocalinsurance.com
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Partner with an expert in other fields.  I have arrangements with P&C agents, annuity agents, etc.. where I strictly handle the life insurance for their clients and refer my life clients to them for P&C.\n\nWe do splits on cases. It has been tremdous revenue boost for all parties.
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You can do a search online. There are a number of sites that rate insurance companies, as well as other companies.
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Bonds are NOT insurance...\n\nIf you decide to self-insure than you are required to get a bond.  The way bonds work is that the bond company promises to pay on your behalf the amount of the accident (up to the bond's limit) but you are expected to pay them back.  In order to get a bond you have to submit lots of financial information to prove that you have enough assets and that you have assets that can be easily liquidated (ie a lot of cash vs a house that you can't sell fast)    Bond companies also look at your credit.\n\nFor most people you need to just get insurance.
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Share is you buy a share in a company (by buying 10 shares you own that part of the company). If the company makes profit, you gain ..if it loses you lose money.you can lose your entire money if the company goes bankrupt.\n\nBonds: you lend money to the company by buying bonds. the returns are fixed, your investment is guaranteed based on the Securities exchange comission rules. \n\nBonds reduce the chance of making good money when the stock price shoots up.
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probability distribution of various loss amounts\n\namount of surplus and expected profit versus probability of a large loss\n\ncost of reinsurance
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That depends. Assuming your company annualizes your commissions, meaning they pay your entire first-year commission upfront, here's how you figure it. Multiply the monthly premium by 12, ($100 x 12 = $1200) then multiply that subtotal by 80%, or .8, for a total first-year commission (FYC) of $960. \n\nIf they don't annualize your commissions, then you'll probably get 80% of the monthly premium each month for the first 12 months. I say probably because if you broker out the policy, some companies have monthly minimums they require before they'll mail you a check. You'll still earn all your money, but you may have to wait a couple of months until you accumulate the minimum. For example, I use a brokerage that will not send a check for less than $50, so if I earn $35  per month, I'll have to wait until the second month before I get my $70.\n\nAlso, please read my blog about insurance agencies so you have a better idea of how it all works, at newlifeagent.blogspot.com. Feel free to share it with others, and please let me know what you think.\n\nBest of luck, and good prospecting.
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That's the definition.. but this is how they work:\n\nCall options: buy if you expect a stock to go up.\nPut options: buy if you expect a stock to go down.\n\nOptions were intended at first as insurance, you would buy option 'contracts' at a certain 'strike price' that would let you to buy 100 shares per contract at the specified strike price, regardless of whatever the stock was trading at. \n\nHowever, many people realized you can make A LOT of money by buying and selling the option contracts themselves. You can also lose everything. They have higher spreads (usually minimum of $0.10), and a lot more volatile since they're cheap. Use at your own discretion.
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Try the website below. It is a great resource for researching Insurance Companies.
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You are betting you will need it they are betting you will not. It appears the insurance company's are winning. Plus they can not lose for when they start to lose the government just allows then to raise the rates.
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This question can have a number of answers, depending upon which context it refers to.  \n\nFor example, imagine a life insurance company receives premiums on a regular and predictable basis.  They invest most of this money in the equity market.  Then they have to pay out money on life insurance policies as people die.\n\nHow much will they have to pay out?  Well, it depends upon your assumptions.  If you assume that people will more or less live as long as they usually have in the past, then you can use tables of numbers that let you estimate how much money will probably need to be paid out over time.  this is an estimate and cannot be certain, and so some assumptions and mathematical models are used.  Hence the word "modelling".\n\nThe money they have to pay out is their "liability".\n\nTheir assets are whatever they bought with the premiums they received, as in stock.  Will the stock market grow enough so that stock can be sold to pay out on the life policies? That depends on  how you model the returns of the stock market.\n\nIn the past, actuaries assumed that stocks will make as much money as they usually have in the last 20 years or so.  Unfortunately they may be wrong.  Another model that is safer to use is that of "risk neutral valuation" which is a model used in option pricing.  it is also the model used by banks to value their assets and liabilities.\n\nhope that example explains the idea.