Common Contracts
1 similar null contracts
Title: Underwriting life-insurance Toon Bullens Number: 26April 24th, 2007
Insurance is an agreement. Members of the Mutual Insurance take out policies with the Mutual. This agreement is called insurance. The document that lays down the agreement is called policy. Members pay a price for the agreement. We call that price premium. The insurance pays out an amount in certain cases. We call these cases claims. The members are therefore buying security. Every term they pay a small amount. In return they get security. This security means that they will get an amount of money in the case of claims. If there are no claims, compensation is not needed. The Mutual Insurance then looks like an office that collects money off its members. The Mutual pays this money to members who have suffered claims. The people entitled to a payout when there are claims are called the insured. They can be the members, but also other people from their family.
