History of insurance and types

7/29/2019 History of insurance and types

1/28

History of insurance

Main article:History of insurance

In some sense we can say that insurance appears

simultaneously with the appearance of human society. We

know of two types of economies in human societies:

natural or non-monetary economies (using barter and

trade with no centralized nor standardized set of financial

instruments) and more modern monetary economies (with

markets, currency, financial instruments and so on). The

former is more primitive and the insurance in such

economies entails agreements of mutual aid. If one

family's house is destroyed the neighbours are committed

to help rebuild. Granaries housed another primitive form of

insurance to indemnify against famines. Often informal or

formally intrinsic to local religious customs, this type of

insurance has survived to the present day in somecountries where a modern money economy with its

financial instruments is not widespread.[citation needed]
http://en.wikipedia.org/wiki/History_of_insurancehttp://en.wikipedia.org/wiki/History_of_insurancehttp://en.wikipedia.org/wiki/History_of_insurancehttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/Wikipedia:Citation_neededhttp://en.wikipedia.org/wiki/History_of_insurance


2/28

Turning to insurance in the modern sense (i.e., insurance

in a modern money economy, in which insurance is part of

the financial sphere), early methods of transferring or

distributing risk were practiced

byChineseandBabyloniantraders as long ago as

the3rdand2ndmillenniaBC, respectively.[13]Chinese

merchants travelling treacherous river rapids would

redistribute their wares across many vessels to limit the

loss due to any single vessel's capsizing. The Babylonians

developed a system which was recorded in the

famousCode of Hammurabi, c. 1750 BC, and practiced by

earlyMediterraneansailingmerchants. If a merchant

received a loan to fund his shipment, he would pay the

lender an additional sum in exchange for the lender's

guarantee to cancel the loan should the shipment be

stolen or lost at sea.

Achaemenianmonarchs of Ancient Persia were the first to

insure their people and made it official by registering the

insuring process in governmental notary offices. The
http://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Chinahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/2nd_millennium_BChttp://en.wikipedia.org/wiki/2nd_millennium_BChttp://en.wikipedia.org/wiki/Millenniumhttp://en.wikipedia.org/wiki/Millenniumhttp://en.wikipedia.org/wiki/Insurance#cite_note-13http://en.wikipedia.org/wiki/Insurance#cite_note-13http://en.wikipedia.org/wiki/Insurance#cite_note-13http://en.wikipedia.org/wiki/Code_of_Hammurabihttp://en.wikipedia.org/wiki/Code_of_Hammurabihttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Achaemenianhttp://en.wikipedia.org/wiki/Achaemenianhttp://en.wikipedia.org/wiki/Achaemenianhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Mediterraneanhttp://en.wikipedia.org/wiki/Code_of_Hammurabihttp://en.wikipedia.org/wiki/Insurance#cite_note-13http://en.wikipedia.org/wiki/Millenniumhttp://en.wikipedia.org/wiki/2nd_millennium_BChttp://en.wikipedia.org/wiki/3rd_millennium_BChttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/China


3/28

insurance tradition was performed each year in Norouz

(beginning of the Iranian New Year); the heads of different

ethnic groups as well as others willing to take part,

presented gifts to the monarch. The most important gift

was presented during a special ceremony. When a gift

was worth more than 10,000 Derrik (Achaemenian gold

coin) the issue was registered in a special office. This was

advantageous to those who presented such special gifts.

For others, the presents were fairly assessed by the

confidants of the court. Then the assessment was

registered in special offices.

The subscription room at Lloyd's of London in the early

19th century.

The purpose of registering was that whenever the person

who presented the gift registered by the court was in
http://en.wikipedia.org/wiki/File:Lloyds_Subscription_Room_edited.jpghttp://en.wikipedia.org/wiki/File:Lloyds_Subscription_Room_edited.jpghttp://en.wikipedia.org/wiki/File:Lloyds_Subscription_Room_edited.jpghttp://en.wikipedia.org/wiki/File:Lloyds_Subscription_Room_edited.jpg


4/28

trouble, the monarch and the court would help him. Jahez,

a historian and writer, writes in one of his books onancient

Iran: "[W]henever the owner of the present is in trouble or

wants to construct a building, set up a feast, have his

children married, etc. the one in charge of this in the court

would check the registration. If the registered amount

exceeded 10,000 Derrik, he or she would receive an

amount of twice as much."[14]

A thousand years later, the inhabitants ofRhodesinvented

the concept of thegeneral average. Merchants whose

goods were being shipped together would pay a

proportionally divided premium which would be used to

reimburse any merchant whose goods were deliberately

jettisoned in order to lighten the ship and save it fromtotal

loss.

The ancient Athenian"maritime loan" advanced money for

voyages with repayment being cancelled if the ship was

lost. In the 4th century BC, rates for the loans differed

according to safe or dangerous times of year, implying an
http://en.wikipedia.org/wiki/Ancient_Iranhttp://en.wikipedia.org/wiki/Ancient_Iranhttp://en.wikipedia.org/wiki/Ancient_Iranhttp://en.wikipedia.org/wiki/Ancient_Iranhttp://en.wikipedia.org/wiki/Insurance#cite_note-14http://en.wikipedia.org/wiki/Rhodeshttp://en.wikipedia.org/wiki/Rhodeshttp://en.wikipedia.org/wiki/Rhodeshttp://en.wikipedia.org/wiki/General_averagehttp://en.wikipedia.org/wiki/General_averagehttp://en.wikipedia.org/wiki/General_averagehttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/Classical_Athenshttp://en.wikipedia.org/wiki/Classical_Athenshttp://en.wikipedia.org/wiki/Classical_Athenshttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/Total_losshttp://en.wikipedia.org/wiki/General_averagehttp://en.wikipedia.org/wiki/Rhodeshttp://en.wikipedia.org/wiki/Insurance#cite_note-14http://en.wikipedia.org/wiki/Ancient_Iranhttp://en.wikipedia.org/wiki/Ancient_Iran


5/28

intuitive pricing of risk with an effect similar to

insurance.[15]The Greeksand Romansintroduced the

origins of health and life insurance c. 600 BCE when they

created guilds called "benevolent societies" which cared

for thefamiliesof deceased members, as well as

payingfuneralexpenses of members.Guildsin theMiddle

Agesserved a similar purpose. TheTalmuddeals with

several aspects of insuringgoods. Before insurance was

established in the late 17th century, "friendly societies"

existed in England, in which people donated amounts of

money to a general sum that could be used for

emergencies.

Separate insurance contracts (i.e., insurance policies not

bundled with loans or other kinds of contracts) were

invented inGenoain the 14th century, as were insurance

pools backed by pledges of landed estates. These new

insurance contracts allowed insurance to be separated

from investment, a separation of roles that first proved

useful inmarine insurance. Insurance became far more
http://en.wikipedia.org/wiki/Insurance#cite_note-15http://en.wikipedia.org/wiki/Insurance#cite_note-15http://en.wikipedia.org/wiki/Insurance#cite_note-15http://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Talmudhttp://en.wikipedia.org/wiki/Talmudhttp://en.wikipedia.org/wiki/Talmudhttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Genoahttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Talmudhttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Familyhttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Insurance#cite_note-15


6/28

sophisticated in post-RenaissanceEurope, and

specialized varieties developed.

Lloyd's of London, pictured in 1991, is one of the world'sleading and most famous insurance markets

Some forms of insurance had developed inLondonby the

early decades of the 17th century. For example, the will of

the English colonistRobert Haymanmentions two

"policies of insurance" taken out with the diocesan

Chancellor of London, Arthur Duck. Of the value of 100

each, one relates to the safe arrival of Hayman's ship in
http://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Robert_Haymanhttp://en.wikipedia.org/wiki/Robert_Haymanhttp://en.wikipedia.org/wiki/Robert_Haymanhttp://en.wikipedia.org/wiki/File:Lloyds_building,_London_at_night.jpghttp://en.wikipedia.org/wiki/File:Lloyds_building,_London_at_night.jpghttp://en.wikipedia.org/wiki/File:Lloyds_building,_London_at_night.jpghttp://en.wikipedia.org/wiki/File:Lloyds_building,_London_at_night.jpghttp://en.wikipedia.org/wiki/Robert_Haymanhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Renaissance


7/28

Guyana and the other is in regard to "one hundred pounds

assured by the said Doctor Arthur Ducke on my life".

Hayman's will was signed and sealed on 17 November

1628 but not proved until 1633.[16]Toward the end of the

seventeenth century, London's growing importance as a

centre for trade increased demand for marine insurance.

In the late 1680s,Edward Lloydopened a coffee house

that became a popular haunt of ship owners, merchants,

and ships' captains, and thereby a reliable source of the

latest shipping news. It became the meeting place for

parties wishing to insure cargoes and ships, and those

willing to underwrite such ventures. Today,Lloyd's of

Londonremains the leading market (note that it is an

insurance market rather than a company) for marine and

other specialist types of insurance, but it operates rather

differently than the more familiar kinds of insurance.

Insurance as we know it today can be traced to theGreat

Fire of London, which in 1666 devoured more than 13,000

houses. The devastating effects of the fire converted the
http://en.wikipedia.org/wiki/Insurance#cite_note-16http://en.wikipedia.org/wiki/Insurance#cite_note-16http://en.wikipedia.org/wiki/Edward_Lloyd_(coffeehouse_owner)http://en.wikipedia.org/wiki/Edward_Lloyd_(coffeehouse_owner)http://en.wikipedia.org/wiki/Edward_Lloyd_(coffeehouse_owner)http://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Great_Fire_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Lloyd%27s_of_Londonhttp://en.wikipedia.org/wiki/Edward_Lloyd_(coffeehouse_owner)http://en.wikipedia.org/wiki/Insurance#cite_note-16


8/28

development of insurance "from a matter of convenience

into one of urgency, a change of opinion reflected in Sir

Christopher Wren's inclusion of a site for 'the Insurance

Office' in his new plan for London in 1667."[17]A number of

attempted fire insurance schemes came to nothing, but in

1681Nicholas Barbon, and eleven associates, established

England's first fire insurance company, the 'Insurance

Office for Houses', at the back of the Royal Exchange.

Initially, 5,000 homes were insured by Barbon's Insurance

Office.[18]

The first insurance company in theUnited

Statesunderwrote fire insurance and was formed in

Charles Town (modern-dayCharleston),South Carolina,

in 1732.Benjamin Franklinhelped to popularize and make

standard the practice of insurance, particularly

againstfirein the form ofperpetual insurance. In 1752, he

founded thePhiladelphia Contributionship for the

Insurance of Houses from Loss by Fire.[19]Franklin's

company was the first to make contributions toward fire
http://en.wikipedia.org/wiki/Insurance#cite_note-17http://en.wikipedia.org/wiki/Insurance#cite_note-17http://en.wikipedia.org/wiki/Nicholas_Barbonhttp://en.wikipedia.org/wiki/Nicholas_Barbonhttp://en.wikipedia.org/wiki/Nicholas_Barbonhttp://en.wikipedia.org/wiki/Insurance#cite_note-18http://en.wikipedia.org/wiki/Insurance#cite_note-18http://en.wikipedia.org/wiki/Insurance#cite_note-18http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Charleston,_South_Carolinahttp://en.wikipedia.org/wiki/Charleston,_South_Carolinahttp://en.wikipedia.org/wiki/South_Carolinahttp://en.wikipedia.org/wiki/South_Carolinahttp://en.wikipedia.org/wiki/South_Carolinahttp://en.wikipedia.org/wiki/Benjamin_Franklinhttp://en.wikipedia.org/wiki/Benjamin_Franklinhttp://en.wikipedia.org/wiki/Benjamin_Franklinhttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Perpetual_Insurancehttp://en.wikipedia.org/wiki/Perpetual_Insurancehttp://en.wikipedia.org/wiki/Perpetual_Insurancehttp://en.wikipedia.org/wiki/Philadelphia_Contributionship_for_the_Insurance_of_Houses_from_Loss_by_Firehttp://en.wikipedia.org/wiki/Philadelphia_Contributionship_for_the_Insurance_of_Houses_from_Loss_by_Firehttp://en.wikipedia.org/wiki/Philadelphia_Contributionship_for_the_Insurance_of_Houses_from_Loss_by_Firehttp://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Philadelphia_Contributionship_for_the_Insurance_of_Houses_from_Loss_by_Firehttp://en.wikipedia.org/wiki/Philadelphia_Contributionship_for_the_Insurance_of_Houses_from_Loss_by_Firehttp://en.wikipedia.org/wiki/Perpetual_Insurancehttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Benjamin_Franklinhttp://en.wikipedia.org/wiki/South_Carolinahttp://en.wikipedia.org/wiki/Charleston,_South_Carolinahttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Insurance#cite_note-18http://en.wikipedia.org/wiki/Nicholas_Barbonhttp://en.wikipedia.org/wiki/Insurance#cite_note-17


9/28

prevention. Not only did his company warn against

certainfire hazards, it refused to insure certain buildings

where the risk of fire was too great, such as all wooden

houses.

In the United States,regulationof the insurance industry

primary resides with individualstateinsurance

departments. The current state insurance regulatoryframework has its roots in the 19th century, whenNew

Hampshireappointed the first insurance commissioner in

1851.[19]Congress adopted the McCarran-Ferguson Act in

1945, which declared that states should regulate the

business of insurance and to affirm that the continued

regulation of the insurance industry by the states is in the

public's best interest.[19] The Financial Modernization Act

of 1999, commonly referred to as "Gramm-Leach-Bliley",

established a comprehensive framework to authorize

affiliations between banks, securities firms, and insurers,

and once again acknowledged that states should regulate

insurance.[19]
http://en.wikipedia.org/wiki/Fire_hazardshttp://en.wikipedia.org/wiki/Fire_hazardshttp://en.wikipedia.org/wiki/Fire_hazardshttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/US_statehttp://en.wikipedia.org/wiki/US_statehttp://en.wikipedia.org/wiki/US_statehttp://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Gramm-Leach-Blileyhttp://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Gramm-Leach-Blileyhttp://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/Insurance#cite_note-NAIC-19http://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/New_Hampshirehttp://en.wikipedia.org/wiki/US_statehttp://en.wikipedia.org/wiki/Regulationhttp://en.wikipedia.org/wiki/Fire_hazards


10/28

Whereas insurance markets have become centralized

nationally and internationally, state insurance

commissioners operate individually, though at times in

concert through theNational Association of Insurance

Commissioners. In recent years, some have called for a

dual state and federal regulatory system (commonly

referred to as theOptional federal charter(OFC)) for

insurance similar to the banking industry.

In 2010, the federalDodd-Frank Wall Street Reform and

Consumer Protection Actestablished the Federal

Insurance Office ("FIO").[20]FIO is part of the

U.S.Department of the Treasuryand it monitors all

aspects of the insurance industry, including identifying

issues or gaps in the regulation of insurers that may

contribute to a systemic crisis in the insurance industry or

in the U.S. financial system.[20]FIO coordinates and

develops federal policy on prudential aspects of

international insurance matters, including representing the

U.S. in theInternational Association of Insurance
http://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissionershttp://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissionershttp://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissionershttp://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissionershttp://en.wikipedia.org/wiki/Optional_federal_charterhttp://en.wikipedia.org/wiki/Optional_federal_charterhttp://en.wikipedia.org/wiki/Optional_federal_charterhttp://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/International_Association_of_Insurance_Supervisorshttp://en.wikipedia.org/wiki/International_Association_of_Insurance_Supervisorshttp://en.wikipedia.org/wiki/International_Association_of_Insurance_Supervisorshttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Dodd-Frank_Wall_Street_Reform_and_Consumer_Protection_Acthttp://en.wikipedia.org/wiki/Optional_federal_charterhttp://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissionershttp://en.wikipedia.org/wiki/National_Association_of_Insurance_Commissioners


11/28

Supervisors.[20]FIO also assists the U.S.Secretary of

Treasurywith negotiating (with the U.S. Trade

Representative) certain international agreements.[20]

Moreover, FIO monitors access to affordable insurance by

traditionally underserved communities and consumers,

minorities, and low- and moderate-income persons.[20] The

Office also assists the U.S. Secretary of the Treasury withadministering the Terrorism Risk Insurance

Program.[20]However, FIO is not a regulator or

supervisor.[20]The regulation of insurance continues to

reside with the states.[20]

[edit]Types of insurance

Any risk that can be quantified can potentially be insured.

Specific kinds of risk that may give rise to claims are

known as perils. An insurance policy will set out in detail

which perils are covered by the policy and which are not.

Below are non-exhaustive lists of the many different types

of insurance that exist. A single policy may cover risks in

one or more of the categories set out below. For
http://en.wikipedia.org/wiki/International_Association_of_Insurance_Supervisorshttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=11http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=11http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=11http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=11http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Secretary_of_Treasuryhttp://en.wikipedia.org/wiki/Insurance#cite_note-FIO-20http://en.wikipedia.org/wiki/International_Association_of_Insurance_Supervisors


12/28

example,vehicle insurancewould typically cover both the

property risk (theft or damage to the vehicle) and the

liability risk (legal claims arising from anaccident). Ahome

insurancepolicy in the US typically includes coverage for

damage to the home and the owner's belongings, certain

legal claims against the owner, and even a small amount

of coverage for medical expenses of guests who are

injured on the owner's property.

Businessinsurance can take a number of different forms,

such as the various kinds of professional liability

insurance, also called professional indemnity (PI), which

are discussed below under that name; and the business

owner's policy (BOP), which packages into one policy

many of the kinds of coverage that a business owner

needs, in a way analogous to how homeowners' insurance

packages the coverages that a homeowner needs.[21]

[edit]Auto insurance

Main article:Vehicle insurance
http://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Insurance#cite_note-21http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=12http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=12http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=12http://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/wiki/Vehicle_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=12http://en.wikipedia.org/wiki/Insurance#cite_note-21http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Vehicle_insurance


13/28

A wrecked vehicle inCopenhagen

Auto insurance protects the policyholder against financial

loss in the event of an incident involving a vehicle theyown, such as in atraffic collision.

Coverage typically includes:

1. Property coverage, for damage to or theft of the car;

2. Liability coverage, for the legal responsibility to othersfor bodily injury or property damage;

3. Medical coverage, for the cost of treating injuries,

rehabilitation and sometimes lost wages and funeral

expenses.

Most countries, such as theUnited Kingdom, require

drivers to buy some, but not all, of these coverages. When
http://en.wikipedia.org/wiki/Copenhagenhttp://en.wikipedia.org/wiki/Copenhagenhttp://en.wikipedia.org/wiki/Copenhagenhttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/File:Car_crash_1.jpghttp://en.wikipedia.org/wiki/File:Car_crash_1.jpghttp://en.wikipedia.org/wiki/File:Car_crash_1.jpghttp://en.wikipedia.org/wiki/File:Car_crash_1.jpghttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Traffic_collisionhttp://en.wikipedia.org/wiki/Copenhagen


14/28

a car is used as collateral for a loan the lender usually

requires specific coverage.

[edit]Gap insurance

Main article:Gap insurance

Gap insurance covers the excess amount on your auto

loan in an instance where your insurance company does

not cover the entire loan. Depending on the companies

specific policies it might or might not cover the deductible

as well. This coverage is marketed for those who put

lowdown payments, have high interest rates on their

loans, and those with 60 month or longer terms. Gap

insurance is typically offered by your finance company

when you first purchase your vehicle. Most auto insurance

companies offer this coverage to consumers as well. If you

are unsure if GAP coverage had been purchased, you

should check your vehicle lease or purchasedocumentation.

[edit]Health insurance
http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=13http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=13http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=13http://en.wikipedia.org/wiki/Gap_insurancehttp://en.wikipedia.org/wiki/Gap_insurancehttp://en.wikipedia.org/wiki/Gap_insurancehttp://en.wikipedia.org/wiki/Down_paymenthttp://en.wikipedia.org/wiki/Down_paymenthttp://en.wikipedia.org/wiki/Down_paymenthttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=14http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=14http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=14http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=14http://en.wikipedia.org/wiki/Down_paymenthttp://en.wikipedia.org/wiki/Gap_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=13


15/28

Main articles:Health insuranceandDental insurance

Great Western Hospital,Swindon

Health insurance policies cover the cost of medical

treatments. Dental insurance, like medical insurance

protects policyholders for dental costs. In the US and

Canada, dental insurance is often part of an employer's

benefits package, along with health insurance.

[edit]Accident, sickness and unemployment insurance

Workers' compensation, or employers' liability insurance,

is compulsory in some countries

Disability insurancepolicies provide financial support in

the event of the policyholder becoming unable to work
http://en.wikipedia.org/wiki/Health_insurancehttp://en.wikipedia.org/wiki/Health_insurancehttp://en.wikipedia.org/wiki/Health_insurancehttp://en.wikipedia.org/wiki/Dental_insurancehttp://en.wikipedia.org/wiki/Dental_insurancehttp://en.wikipedia.org/wiki/Dental_insurancehttp://en.wikipedia.org/wiki/Swindonhttp://en.wikipedia.org/wiki/Swindonhttp://en.wikipedia.org/wiki/Swindonhttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=15http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=15http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=15http://en.wikipedia.org/wiki/Disability_insurancehttp://en.wikipedia.org/wiki/Disability_insurancehttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Pipe_installation_2.jpghttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/File:Great_western_hospital.JPGhttp://en.wikipedia.org/wiki/Disability_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=15http://en.wikipedia.org/wiki/Swindonhttp://en.wikipedia.org/wiki/Dental_insurancehttp://en.wikipedia.org/wiki/Health_insurance


16/28

because of disabling illness or injury. It provides

monthly support to help pay such obligations

asmortgage loansand credit cards. Short-term and

long-term disability policies are available to individuals,

but considering the expense, long-term policies are

generally obtained only by those with at least six-figure

incomes, such as doctors, lawyers, etc. Short-term

disability insurance covers a person for a period

typically up to six months, paying a stipend each month

to cover medical bills and other necessities.

Long-term disability insurance covers an individual's

expenses for the long term, up until such time as they

are considered permanently disabled and thereafter.

Insurance companies will often try to encourage the

person back into employment in preference to and

before declaring them unable to work at all and

therefore totally disabled.
http://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Mortgage_loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Mortgage_loan


17/28

Disability overhead insuranceallows business owners

to cover the overhead expenses of their business while

they are unable to work.

Total permanent disability insuranceprovides benefits

when a person is permanently disabled and can no

longer work in their profession, often taken as an

adjunct to life insurance.

Workers' compensation insurance replaces all or part of

a worker'swages lost and accompanying medical

expenses incurred because of a job-related injury.

[edit]Casualty

Main article:Casualty insurance

Casualty insurance insures against accidents, not

necessarily tied to any specific property. It is a broad

spectrum of insurance that a number of other types of

insurance could be classified, such as auto, workerscompensation, and some liability insurances.
http://en.wikipedia.org/wiki/Business_overhead_expense_disability_insurancehttp://en.wikipedia.org/wiki/Business_overhead_expense_disability_insurancehttp://en.wikipedia.org/wiki/Total_permanent_disability_insurancehttp://en.wikipedia.org/wiki/Total_permanent_disability_insurancehttp://en.wikipedia.org/wiki/Workers%27_compensationhttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=16http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=16http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=16http://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/wiki/Casualty_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=16http://en.wikipedia.org/wiki/Wagehttp://en.wikipedia.org/wiki/Workers%27_compensationhttp://en.wikipedia.org/wiki/Total_permanent_disability_insurancehttp://en.wikipedia.org/wiki/Business_overhead_expense_disability_insurance


18/28

Crime insuranceis a form of casualty insurance that

covers the policyholder against losses arising from

thecriminal actsof third parties. For example, a

company can obtain crime insurance to cover losses

arising fromtheftorembezzlement.

Political risk insuranceis a form of casualty insurance

that can be taken out by businesses with operations in

countries in which there is a risk that revolutionor

otherpoliticalconditions could result in a loss.

[edit]Life

Main article:Life insurance

Life insurance provides a monetary benefit to a decedent's

family or other designated beneficiary, and may

specifically provide for income to an insured person's

family, burial, funeral and other final expenses. Life

insurance policies often allow the option of having the

proceeds paid to the beneficiary either in a lump sum cash

payment or anannuity. In most states, a person cannot
http://en.wikipedia.org/wiki/Crime_insurancehttp://en.wikipedia.org/wiki/Crime_insurancehttp://en.wikipedia.org/wiki/Criminal_acthttp://en.wikipedia.org/wiki/Criminal_acthttp://en.wikipedia.org/wiki/Criminal_acthttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Embezzlementhttp://en.wikipedia.org/wiki/Embezzlementhttp://en.wikipedia.org/wiki/Political_risk_insurancehttp://en.wikipedia.org/wiki/Political_risk_insurancehttp://en.wikipedia.org/wiki/Revolutionhttp://en.wikipedia.org/wiki/Revolutionhttp://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=17http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=17http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=17http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Annuity_(financial_contracts)http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=17http://en.wikipedia.org/wiki/Politicshttp://en.wikipedia.org/wiki/Revolutionhttp://en.wikipedia.org/wiki/Political_risk_insurancehttp://en.wikipedia.org/wiki/Embezzlementhttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Criminal_acthttp://en.wikipedia.org/wiki/Crime_insurance


19/28

purchase a policy on another person without their

knowledge.

Annuities provide a stream of payments and are generally

classified as insurance because they are issued by

insurance companies, are regulated as insurance, and

require the same kinds of actuarial and investment

management expertise that life insurance requires.Annuities andpensionsthat pay a benefit for life are

sometimes regarded as insurance against the possibility

that aretireewill outlive his or her financial resources. In

that sense, they are the complement of life insurance and,

from an underwriting perspective, are the mirror image of

life insurance.

Certain life insurance contracts accumulatecashvalues,

which may be taken by the insured if the policy is

surrendered or which may be borrowed against. Some

policies, such as annuities andendowment policies, are

financial instruments to accumulate

orliquidatewealthwhen it is needed.
http://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Pensionhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Liquidationhttp://en.wikipedia.org/wiki/Endowment_policyhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/Retirementhttp://en.wikipedia.org/wiki/Pension


20/28

In many countries, such as the US and the UK, thetax

lawprovides that the interest on this cash value is not

taxable under certain circumstances. This leads to

widespread use of life insurance as a tax-efficient method

ofsavingas well as protection in the event of early death.

In the US, the tax on interest income on life insurance

policies and annuities is generally deferred. However, insome cases the benefit derived fromtax deferralmay be

offset by a low return. This depends upon the insuring

company, the type of policy and other variables (mortality,

market return, etc.). Moreover, other income tax saving

vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be

better alternatives for value accumulation.

[edit]Burial insurance

Burial insurance is a very old type of life insurance which

is paid out upon death to cover final expenses, such asthe cost of afuneral. TheGreeksandRomansintroduced

burial insurance circa 600 CE when they

organizedguildscalled "benevolent societies" which cared
http://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Tax_deferralhttp://en.wikipedia.org/wiki/Tax_deferralhttp://en.wikipedia.org/wiki/Tax_deferralhttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=18http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=18http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=18http://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Guildhttp://en.wikipedia.org/wiki/Ancient_Romehttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Funeralhttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=18http://en.wikipedia.org/wiki/Tax_deferralhttp://en.wikipedia.org/wiki/Savinghttp://en.wikipedia.org/wiki/Tax_lawhttp://en.wikipedia.org/wiki/Tax_law


21/28

for the surviving families and paid funeral expenses of

members upon death. Guilds in theMiddle Agesserved a

similar purpose, as did friendly societies during Victorian

times.

[edit]Property

Main article:Property insurance

This tornadodamage to anIllinoishome would beconsidered an "Act of God" for insurance purposes

Property insurance provides protection against risks to

property, such asfire,theftorweatherdamage. This may

include specialized forms of insurance such as fire

insurance,flood insurance,earthquake insurance,home

insurance, inland marine insurance orboiler insurance.

The term property insurancemay, like casualty insurance,
http://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/wiki/Middle_Ageshttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=19http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=19http://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=19http://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/wiki/Tornadohttp://en.wikipedia.org/wiki/Tornadohttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Act_of_Godhttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Weatherhttp://en.wikipedia.org/wiki/Weatherhttp://en.wikipedia.org/wiki/Weatherhttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/File:Tornado_Damage,_Illinois_2.JPGhttp://en.wikipedia.org/wiki/File:Tornado_Damage,_Illinois_2.JPGhttp://en.wikipedia.org/wiki/File:Tornado_Damage,_Illinois_2.JPGhttp://en.wikipedia.org/wiki/File:Tornado_Damage,_Illinois_2.JPGhttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Weatherhttp://en.wikipedia.org/wiki/Thefthttp://en.wikipedia.org/wiki/Firehttp://en.wikipedia.org/wiki/Act_of_Godhttp://en.wikipedia.org/wiki/Illinoishttp://en.wikipedia.org/wiki/Tornadohttp://en.wikipedia.org/wiki/Property_insurancehttp://en.wikipedia.org/w/index.php?title=Insurance&action=edit&section=19http://en.wikipedia.org/wiki/Middle_Ages


22/28

be used as a broad category of various subtypes of

insurance, some of which are listed below:

US Airways Flight 1549waswritten offafter ditching intotheHudson River

Aviation insuranceprotects aircraft hulls and spares,

and associated liability risks, such as passenger and

third-party liability.Airportsmay also appear under this

subcategory, including air traffic control and refuelling

operations for international airports through to smaller

domestic exposures.

Boiler insurance(also known as boiler and machinery

insurance, or equipment breakdown insurance) insures

against accidental physical damage to boilers,equipment or machinery.
http://en.wikipedia.org/wiki/US_Airways_Flight_1549http://en.wikipedia.org/wiki/US_Airways_Flight_1549http://en.wikipedia.org/wiki/Write-offhttp://en.wikipedia.org/wiki/Write-offhttp://en.wikipedia.org/wiki/Hudson_Riverhttp://en.wikipedia.org/wiki/Hudson_Riverhttp://en.wikipedia.org/wiki/Hudson_Riverhttp://en.wikipedia.org/wiki/Aviation_insurancehttp://en.wikipedia.org/wiki/Aviation_insurancehttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/Airporthttp://en.wikipedia.org/wiki/Airporthttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/File:Plane_crash_into_Hudson_River_muchcropped.jpghttp://en.wikipedia.org/wiki/File:Plane_crash_into_Hudson_River_muchcropped.jpghttp://en.wikipedia.org/wiki/File:Plane_crash_into_Hudson_River_muchcropped.jpghttp://en.wikipedia.org/wiki/File:Plane_crash_into_Hudson_River_muchcropped.jpghttp://en.wikipedia.org/wiki/Boiler_insurancehttp://en.wikipedia.org/wiki/Airporthttp://en.wikipedia.org/wiki/Aircrafthttp://en.wikipedia.org/wiki/Aviation_insurancehttp://en.wikipedia.org/wiki/Hudson_Riverhttp://en.wikipedia.org/wiki/Write-offhttp://en.wikipedia.org/wiki/US_Airways_Flight_1549


23/28

Builder's risk insurance insures against the risk of

physical loss or damage to property during construction.

Builder's risk insurance is typically written on an "all risk"

basis covering damage arising from any cause

(including the negligence of the insured) not otherwise

expressly excluded. Builder's risk insurance is coverage

that protects a person's or organization's insurable

interest in materials, fixtures and/or equipment being

used in the construction or renovation of a building or

structure should those items sustain physical loss or

damage from an insured peril.[22]

Crop insurancemay be purchased by farmers to reduce

or manage various risks associated with growing crops.

Such risks include crop loss or damage caused by

weather, hail, drought, frost damage, insects, or

disease.

[23]

Earthquake insuranceis a form of property insurance

that pays the policyholder in the event of
http://en.wikipedia.org/wiki/Builder%27s_risk_insurancehttp://en.wikipedia.org/wiki/Insurance#cite_note-Adjusting_Today-22http://en.wikipedia.org/wiki/Crop_insurancehttp://en.wikipedia.org/wiki/Crop_insurancehttp://en.wikipedia.org/wiki/Insurance#cite_note-23http://en.wikipedia.org/wiki/Insurance#cite_note-23http://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Earthquake_insurancehttp://en.wikipedia.org/wiki/Insurance#cite_note-23http://en.wikipedia.org/wiki/Crop_insurancehttp://en.wikipedia.org/wiki/Insurance#cite_note-Adjusting_Today-22http://en.wikipedia.org/wiki/Builder%27s_risk_insurance


24/28

anearthquakethat causes damage to the property.

Most ordinary home insurance policies do not cover

earthquake damage. Earthquake insurance policies

generally feature a high deductible. Rates depend on

location and hence the likelihood of an earthquake, as

well as theconstruction of the home.

Fidelity bondis a form of casualty insurance that covers

policyholders for losses incurred as a result of

fraudulent acts by specified individuals. It usually

insures a business for losses caused by the dishonest

acts of its employees.

Hurricane Katrinacaused over $80 billion of storm and

flood damage

Flood insuranceprotects against property loss due to

flooding. Many insurers in the US do not provide flood
http://en.wikipedia.org/wiki/Earthquakehttp://en.wikipedia.org/wiki/Earthquakehttp://en.wikipedia.org/wiki/Earthquakehttp://en.wikipedia.org/wiki/Deductiblehttp://en.wikipedia.org/wiki/Deductiblehttp://en.wikipedia.org/wiki/Earthquake_engineeringhttp://en.wikipedia.org/wiki/Earthquake_engineeringhttp://en.wikipedia.org/wiki/Earthquake_engineeringhttp://en.wikipedia.org/wiki/Fidelity_bondhttp://en.wikipedia.org/wiki/Fidelity_bondhttp://en.wikipedia.org/wiki/Hurricane_Katrinahttp://en.wikipedia.org/wiki/Hurricane_Katrinahttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/File:FEMA_-_14947_-_Photograph_by_Jocelyn_Augustino_taken_on_08-30-2005_in_Louisiana.jpghttp://en.wikipedia.org/wiki/File:FEMA_-_14947_-_Photograph_by_Jocelyn_Augustino_taken_on_08-30-2005_in_Louisiana.jpghttp://en.wikipedia.org/wiki/File:FEMA_-_14947_-_Photograph_by_Jocelyn_Augustino_taken_on_08-30-2005_in_Louisiana.jpghttp://en.wikipedia.org/wiki/File:FEMA_-_14947_-_Photograph_by_Jocelyn_Augustino_taken_on_08-30-2005_in_Louisiana.jpghttp://en.wikipedia.org/wiki/Flood_insurancehttp://en.wikipedia.org/wiki/Hurricane_Katrinahttp://en.wikipedia.org/wiki/Fidelity_bondhttp://en.wikipedia.org/wiki/Earthquake_engineeringhttp://en.wikipedia.org/wiki/Deductiblehttp://en.wikipedia.org/wiki/Earthquake


25/28

insurance in some parts of the country. In response to

this, the federal government created the National Flood

Insurance Programwhich serves as the insurer of last

resort.

Home insurance, also commonly called hazard

insurance or homeowners insurance (often abbreviated

in the real estate industry as HOI), provides coverage

for damage or destruction of the policyholder's home. In

some geographical areas, the policy may exclude

certain types of risks, such as flood or earthquake, that

require additional coverage. Maintenance-related issues

are typically the homeowner's responsibility. The policy

may include inventory, or this can be bought as a

separate policy, especially for people who rent housing.

In some countries, insurers offer a package which may

include liability and legal responsibility for injuries andproperty damage caused by members of the household,

including pets.[24]
http://en.wikipedia.org/wiki/National_Flood_Insurance_Programhttp://en.wikipedia.org/wiki/National_Flood_Insurance_Programhttp://en.wikipedia.org/wiki/National_Flood_Insurance_Programhttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/Insurance#cite_note-24http://en.wikipedia.org/wiki/Insurance#cite_note-24http://en.wikipedia.org/wiki/Home_insurancehttp://en.wikipedia.org/wiki/National_Flood_Insurance_Programhttp://en.wikipedia.org/wiki/National_Flood_Insurance_Program


26/28

Landlord insurancecovers residential and commercial

properties which are rented to others. Most

homeowners' insurance covers only owner-occupied

homes.

Fire aboardMV Hyundai Fortune

Marine insuranceand marine cargo insurance cover the

loss or damage of vessels at sea or on inland

waterways, and of cargo in transit, regardless of the

method of transit. When the owner of the cargo and the

carrier are separate corporations, marine cargo

insurance typically compensates the owner of cargo for

losses sustained from fire, shipwreck, etc., but excludes

losses that can be recovered from the carrier or the

carrier's insurance. Many marine insurance underwriters

will include "time element" coverage in such policies,
http://en.wikipedia.org/wiki/Landlord_insurancehttp://en.wikipedia.org/wiki/Landlord_insurancehttp://en.wikipedia.org/wiki/MV_Hyundai_Fortunehttp://en.wikipedia.org/wiki/MV_Hyundai_Fortunehttp://en.wikipedia.org/wiki/MV_Hyundai_Fortunehttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/File:HYUNDAI_FORTUNE.JPGhttp://en.wikipedia.org/wiki/File:HYUNDAI_FORTUNE.JPGhttp://en.wikipedia.org/wiki/File:HYUNDAI_FORTUNE.JPGhttp://en.wikipedia.org/wiki/File:HYUNDAI_FORTUNE.JPGhttp://en.wikipedia.org/wiki/Marine_insurancehttp://en.wikipedia.org/wiki/MV_Hyundai_Fortunehttp://en.wikipedia.org/wiki/Landlord_insurance


27/28

which extends the indemnity to cover loss of profit and

other business expenses attributable to the delay

caused by a covered loss.

Supplemental natural disaster insurance covers

specified expenses after a natural disaster renders the

policyholder's home uninhabitable. Periodic payments

are made directly to the insured until the home is rebuilt

or a specified time period has elapsed.

Surety bondinsurance is a three-party insurance

guaranteeing the performance of the principal.

The demand for terrorism insurance surged after9/11

Terrorism insuranceprovides protection against any

loss or damage caused by terroristactivities. In the US

in the wake of9/11, the Terrorism Risk Insurance
http://en.wikipedia.org/wiki/Surety_bondhttp://en.wikipedia.org/wiki/Surety_bondhttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Terrorism_insurancehttp://en.wikipedia.org/wiki/Terrorism_insurancehttp://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Terrorism_Risk_Insurance_Acthttp://en.wikipedia.org/wiki/File:WTC_smoking_on_9-11.jpeghttp://en.wikipedia.org/wiki/File:WTC_smoking_on_9-11.jpeghttp://en.wikipedia.org/wiki/File:WTC_smoking_on_9-11.jpeghttp://en.wikipedia.org/wiki/File:WTC_smoking_on_9-11.jpeghttp://en.wikipedia.org/wiki/Terrorism_Risk_Insurance_Acthttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Terrorismhttp://en.wikipedia.org/wiki/Terrorism_insurancehttp://en.wikipedia.org/wiki/9/11http://en.wikipedia.org/wiki/Surety_bond


28/28

Act2002 (TRIA) set up a federal Program providing a

transparent system of shared public and private

compensation for insured losses resulting from acts of

terrorism. The program was extended until the end of

2014 by the Terrorism Risk Insurance Program

Reauthorization Act 2007 (TRIPRA).

Volcano insurance is a specialized insurance protecting

against damage arising specifically from volcanic

eruptions.

Windstorm insurance is an insurance covering the

damage that can be caused by wind events suchashurricanes.
http://en.wikipedia.org/wiki/Terrorism_Risk_Insurance_Acthttp://en.wikipedia.org/wiki/Terrorism_Risk_Insurance_Acthttp://en.wikipedia.org/wiki/Volcanohttp://en.wikipedia.org/wiki/Volcanohttp://en.wikipedia.org/wiki/Volcanohttp://en.wikipedia.org/wiki/Tropical_cyclonehttp://en.wikipedia.org/wiki/Tropical_cyclonehttp://en.wikipedia.org/wiki/Tropical_cyclonehttp://en.wikipedia.org/wiki/Tropical_cyclonehttp://en.wikipedia.org/wiki/Volcanohttp://en.wikipedia.org/wiki/Volcanohttp://en.wikipedia.org/wiki/Terrorism_Risk_Insurance_Act

History of insurance and types

Documents

Transcript of History of insurance and types