The essence of Massachussets insurance.
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Formation in Massachussets market economy, building its infrastructure, creation of effective mechanisms for managing all of the market would require theoretical clarification of the essence of insurance, adequate search methods to protect new conditions and compensation of losses both individuals and legal entities.
Along with the development of market relations, the complication of correlation “by business bonds between all the subjects of increasing the likelihood of unforeseen complications, increased risk at all levels.
With the risk we encounter every day: and in everyday communication and implementation of any business today is impossible without risks. Typically, the risk associated with uncertainty in rezultati.Tobto possible, there is the uncertainty factor is the need to make decisions that are aimed at addressing, preventing and limiting the maximum nehatyinyh consequences of risk.
Entrepreneur in market conditions risk losing their capital, can lead to rash behavior of their capital losses on their suppliers, customers or intermediaries. Engaged in market conditions may lose their jobs, health, work, their savings, property. Some people lose their breadwinner, someone does not return a loan, someone is suffering from foreign exchange and so on.
Risk as an economic category emerged with the advent of commodity-money relations and reflects an event that could happen or not. In addition to events that took place, there are three options for economic result:
“Positive (profit, profit);
Zero (result not changed);
“Negative (loss, loss).
Significantly affect the growth of risks associated with equipment and technology, development of scientific and technological progress.
All become more acute environmental problems. Need professional resolve the political aspects of social existence.
Increase risk in all areas of human life and economic activity requires the protection of citizens against possible losses and distribution losses among the general public. Pattern here is: the more the subjects covered by insurance, the less it costs individuals.
Insurance – a way to protect property interests of citizens in a market economy. Everyone should know how it can limit your risk and how much it cost her. On the other hand – the insurance business is profitable kind of business, which in Ukraine is only beginning to develop.
The term “insurance” literally translates as “a carelessness” or “insurance”, so the insurance should make safe living of every person and society as a whole in space and time.
“Creating carelessness” is achieved activities of the insurer, ie the sequence of application functions of insurance. First – perventsiyeyu (pouperedzhennyu display of works taken in the management of risk). The second – investment, credit lines of citizens in the society of insurance premiums (nationals expense – the insurance process). This credit provides an additional opportunity to create new jobs. The third – saving allows citizens as well as in banks to save and accumulate money. It also obtained from the insurer at this time “insurance coverage”, ie losses in case of risk. This “coverage” can be much higher than the amount of accumulation of the insured (customer). The fourth – in payment of damages FM amounts of insurance (are required).
Insurance, as science has its conceptual apparatus, characteristic functions, using the appropriate category exists within certain theories based on the basic, initial position, ie principles.
The basic principles of insurance are:
- Free choice of insurer and type of voluntary forms of insurance;
- Insurance risk;
- Insurable interest;
- Integrity (mandatory);
- Damages caused within the real losses;
- Insurance (as a form of insurance coverage) may not be a means of enrichment;
- Franchise;
- Subrogation;
- Indemnity;
- and others.
Given the principles of insurance may decide such applied problems of human life and sispilstva in general:
- Satisfy interest entities and individuals in maintaining facilities, in which the money invested, as well as revenue;
- In case the insured event to get proper, the most adequate, restitution, and to achieve continuity of production.
The need for insurance protection has several aspects: natural, economic, social, legal, international.
From the standpoint of the natural interests of society and its individual citizens, insurance emerged as a means of preserving the material welfare of occurrence of random, unpredictable, and predictable, but undesirable and those that can not be avoided, cases for distribution to individual citizens for damages caused to the many other members of society to ease the burden of victims.
Economic dependency insurance coverage due to the necessity of establishing such kind of human activity based on the accumulation of funds for damages caused by the onset of harmful to health and (or) material well-being events, both individuals and legal entities, which creates favorable conditions for the continuous process of social reproduction.
Business activity associated with risk, ie the probability of losses nedooderzhannya income or even destruction. The risk is usually considered reverse side of liberty and independence of the company. Reasons for risk – is nepered bachuvanist-market situation and the innovative nature of entrepreneurship. The risk may be industrial, commercial and ifnansovym.
The risk can have three levels:
- Total loss of profit (risk that is allowed);
- Refund of expenses;
- Bankruptcy (catastrophic risk).
The main form of prevention is insurance risk, but Equally important are the tactics of humility and courage company tactics.
Principal in the insurance – is the identification and definition of risk and calculation of the consequences of its implementation. Generally, the concept of risk associated with understanding the danger, uncertainty, threat, uncertainty, unreliability, excitement and loss. Risk in insurance is not just any action or intention, but also on the “object (life, health rights, its property and its liability to third parties for their activity or inactivity) as well as events, phenomena, a set of phenomena, or degree hazard. In various nations feeling of risk, danger, revealed varying degrees, as shown on behavior and alienation rektsiyeyu unequal risks including “risk insurance”.
In developed countries, insurance is a sector of the economy, because offloads the budgetary estimates of damages, investment in the economy, solving social problems. In addition to the major factors of socio-economic development of any country relevant criterion for the safety of life and production, ie insurance protection. Insurance companies worldwide are considered as powerful financial and investment institutions, in addition, they solve the employment problem in the world.
Based on the above, the role of insurance reflects the practical application of the economic category, and is:
- Provision of the reproductive process of stabilization and economic sustainability in society;
- Optimization of resources aimed at organizing economic security;
- Rationalization of the formation and use of funds allocated for social programs, the first-born, etc.;
- To create additional sources of resources to invest in the economy.
2.1. Insured – legal entities and legally capable citizens who have signed contracts with insurers for the insurance of their own interest or interest of a third person, pay insurance premiums and have the right (by contract or by law) to receive compensation (compensation) in the insurance case.