Is that like Big Pharma, or Chemical companies who've allocated billions of dollars to some fund, and the adverts on the evil box on the wall, tell you you're entitled to ? Aren't these funded by public funds?
When big pharm was exempted, didn't the blob set aside a bunch of paper to deal with those hurt by big pharm ?
I'm not criticizing, I'm really curious about this "reinsurance" you speak of.
I can explain this because I worked for an insurance company for 4 years. Standard insurance is the insurer promises to cover losses that the insured names. It may be that a policy caps a single loss, say $100,000. And then sets aside money to be available should a covered loss occur. . . . Say the coverage is for fire, and the actual loss is greater than $100,000 - so much so as to endanger the financial security of the insurance company. When such a situation is found to be possible, the insurance company buys an insurance policy with a reinsurer (of which there are several), Now, if the insurance company has to cover a customer loss of, say, $200,000 the company gets the extra $100,000 from the reinsurer.
Now that I read this, I'm not sure I explained it very well. Insurance companies agree to cover losses in certain amounts, then set aside those amounts (invested, and likely subject to a high intereste rate). If a loss occurs and they have to pay more to cover the loss, they get the money from a reinsurer, which preserves their initial investment.
All of the insurance companies have backup - called reinsurance.
Is that like Big Pharma, or Chemical companies who've allocated billions of dollars to some fund, and the adverts on the evil box on the wall, tell you you're entitled to ? Aren't these funded by public funds?
When big pharm was exempted, didn't the blob set aside a bunch of paper to deal with those hurt by big pharm ?
I'm not criticizing, I'm really curious about this "reinsurance" you speak of.
I can explain this because I worked for an insurance company for 4 years. Standard insurance is the insurer promises to cover losses that the insured names. It may be that a policy caps a single loss, say $100,000. And then sets aside money to be available should a covered loss occur. . . . Say the coverage is for fire, and the actual loss is greater than $100,000 - so much so as to endanger the financial security of the insurance company. When such a situation is found to be possible, the insurance company buys an insurance policy with a reinsurer (of which there are several), Now, if the insurance company has to cover a customer loss of, say, $200,000 the company gets the extra $100,000 from the reinsurer.
Now that I read this, I'm not sure I explained it very well. Insurance companies agree to cover losses in certain amounts, then set aside those amounts (invested, and likely subject to a high intereste rate). If a loss occurs and they have to pay more to cover the loss, they get the money from a reinsurer, which preserves their initial investment.