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Insurance in USA part 5 PDF

Despite the fact that insurance in case of collision and in case of natural disasters is not mandatory according to the laws of all States, these types of policies often operate.

Choosing the optimal insurance policy by a vehicle driver in the United States is a complicated matter. In America, there are many insurance companies that offer a large number of different insurance schemes. They take into account the age of the motorist, the area of the city where the car last night, estimated daily mileage, the main purpose of the use of the machine (business or pleasure), how many traffic violations within five years, car model and year, and more. All these data are used to calculate the optimal amount of insurance coverage and the corresponding daily insurance premium. [20]

Maximum contributions are paid by foreigners who do not have a history of driving a car in the United States. Only after 2-3 years, when such a story appears, for them, contributions can be reduced. Therefore, the insurance premium for a foreigner immediately after his arrival in new York can be set in the amount of up to 7 thousand dollars per year. With the receipt of an American driver's license, this amount can be reduced by 2 thousand dollars, and after several years of driving in new York, a foreigner can achieve a reduction in the insurance premium by another couple of thousand dollars. And all this under the condition of accident-free driving and no problems with the police.

Property insurance also includes real estate insurance (homeinsurance). It provides insurance compensation for damage caused to real estate for any reason and under any circumstances. This type of insurance is often also applied to household items, home appliances, other movable property located in the insured object.

Home insurance in the United States is the second largest premium collected, second only to auto insurance. [21]

In the USA insurance policies have a high degree of unification on insured risks. There are only seven main types of policies in use across the country. From these standard tools, the homeowner's individual insurance protection is collected. Common additional conditions put forward by the policyholder are usually the requirement to account for inflation, which gives some increase in the cost of the policy, as well as the deductible, that is, the minimum level of loss that the policyholder covers on their own. The most common deductibles are 250, 500 and 1000 dollars. The deductible is very attractive for the policyholder, as it allows to reduce the insurance rate by 20-30%.

In addition to the house can be insured detached buildings: garage, swimming pool, etc., within 10% of the cost of the house, and green spaces - up to 5% of the cost of the house.

There is a separate type of property insurance intended for tenants. It provides compensation for damage caused to rental property and movable property. Thus, the tenant will not have to pay the landlord damage caused by himself or another person during transportation, for example, to personal belongings (Luggage during transportation), including jewelry, furs from damage when worn at home and other circumstances.

Home insurance, which is used as a working space, for example, by small entrepreneurs or persons of liberal professions, is carried out at other rates and policies (SmallBusinessInsurance). The reason for this is the greater saturation of such housing with social devices and equipment, as well as more free access of third parties to such apartments-offices. Insurance companies carefully monitor the nature of the use of insured housing, refusing to pay "violators of the Convention."

U.S. citizens over the years have developed a kind of reflex to home insurance. It's not just about the media replicating the spectacular pictures of destruction wrought by typhoons and hurricanes. Almost all housing is purchased in installments, and one of the mandatory conditions of the loan is the insurance of the purchased house or apartment.[22]

2.3 The Distribution. Analysis of distribution channels of insurance services

Worldwide, agents and brokers are the main sales channels of insurance products. In the US, intermediaries serve 95% of the market.

To work with individuals most often use Agency networks, and with corporate clients-brokers.

Insurance agents act on behalf of and on behalf of the insurer, and brokers act on their own behalf and on behalf of the policyholder and the insurer. The agent acts as a market participant from the supply side of insurance services, i.e. the interests of the insurer are priority for him, therefore, the activity of agents is regulated, as a rule, not separately, but together with insurers. Insurance broker in developed countries usually acts in the interests of the insured, so the activities of brokers are regulated by the state separately, using special forms and methods.

In the United States agents may have varying degrees of independence under the law:

* agents of insurance companies work for one company, represent its interests and, as a rule, not only conclude a contract, but also continue to provide customer service after the entry into force of the contract;

* independent agents have the right to work simultaneously for several insurance companies, choosing for the client the optimal insurance coverage for different types of insurance.[23]

According To the international Federation of insurance intermediaries (TheWorldFederationofInsuranceIntermediaries), " insurance brokers-usually act on the side of the policyholder and act independently in relation to insurance companies. Brokers help their clients in choosing an insurance program between different options of insurance products and insurance companies. Acting as an" agent " in relation to the buyer, brokers usually work with a variety of insurance companies, placing the risks of their customers."

The requirements imposed by us regulatory authorities on companies and individual entrepreneurs engaged in insurance brokerage activities are as follows:

* registration as a legal entity or individual entrepreneur;

* entry into the register of insurance brokers;

* high level of qualification of employees of the brokerage company or insurance broker-individual entrepreneur.

* professional liability insurance / financial guarantees. In the United States, brokerage licensing takes place at the Federal level, and each state may require the broker to have security for a mortgage guarantee. Another option to protect the interests of customers – the division of Bank accounts into two types – client (which lists insurance premiums and payments) and directly brokerage (which comes brokerage Commission).[24]

In addition, English insurance brokers are subject to mandatory audit and must have a capital of at least 1,000 British pounds for all insurance transactions they conduct.

The role of insurance and reinsurance brokers, as well as other intermediaries, is to minimize transaction costs and neutralize the existing uncertainty in the market. In addition, the client, who turned to the insurance broker, receives a more suitable insurance product for him, which without his help would be difficult to disassemble (optimization function). In recent years, the functions of insurance brokers are somewhat transformed: the role of the service component of their activities is increasingly increasing – the importance of services for the settlement of losses and risk management is increasing.

All variety of services of insurance brokers can be qualified on various parameters. First, the services vary depending on the type of insurance broker's client:

- services to the policyholder;

- services to the reinsurer;

- services of insurance companies.

Services to the policyholder, in fact, differ little from the services provided to the reinsurer. In the first case, the broker represents the interests of the policyholder to insurance companies, in the second case-the interests of the insurer to other insurance and reinsurance organizations. The services provided by the broker to insurance companies are mainly limited to advice in the field of actuarial calculations, underwriting and legal assistance. The insurance broker has no right to represent the interests of the insurer to its clients.[25]

Another qualification is built depending on the type of service:

- consulting service;

- organizational services (correspondence and negotiations in the interests of the client, representation of the client at the conclusion of contracts, in the settlement of losses, open and closed tenders among insurance companies);

- services in work with documents (preparation and transfer to the insurance company of all documentation, introduction in the contract of all necessary changes and additions, collection and transfer to the insurance company of necessary certificates and documents at occurrence of insured event);

- assistance in the implementation of monetary settlements (payment of insurance premiums, insurance payments, the implementation of the return of the insurance premium in the event of early termination of the contract, transfer of funds received by recourse claims from the sale of the returned property);

- other services (offers on the websites of insurance brokers).

 

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