magnusllewellin (@magnusllewellin)

What is insurance?

What is insurance? Insurance is a contract between an individual (the policyholder) and an insurance company. This contract provides that the insurance company will cover some portion of a policyholder’s loss as long as the policyholder meets certain conditions stipulated in the insurance contract. The policyholder pays a premium to obtain insurance coverage. If the policyholder experiences a loss covered by insurance, such as a car accident or a house fire, the policyholder files a claim for reimbursement with the insurance company. The policyholder will pay a deductible to cover part of the loss, and the insurance company will pay the rest.

When you buy an insurance policy, you’re pooling your loss risk with the loss risk of everyone else who has purchased insurance from the same company. If you get your homeowners insurance from State Farm, which sells far more homeowners insurance policies than any of its competitors, you’re joining forces with millions of other homeowners to collectively protect each other against loss. Each homeowner pays annual premiums; State Farm collected more than $39.593 billion in earned premiums in 2016, according to its annual report.


Here’s the front page of today’s ⁦@thetimesscot⁩ ... https://t.co/BHdm63UbMD
Here’s the front page of today’s ⁦@thetimesscot⁩ ... https://t.co/BHdm63UbMD
Scotland must retain its best businesses to enjoy genuine success, writes Philip Rodney in Business https://t.co/DVwe25Y6kk
Scotland must retain its best businesses to enjoy genuine success, writes Philip Rodney in Business 

https://t.co/DVwe25Y6kk
RT @SundayTimesSco: Nicola Sturgeon on #MeToo:"It has made a lot of people, me included, reassess things that at the time you just put up w…
RT @SundayTimesSco: Nicola Sturgeon on #MeToo:
‘It seems to me increasingly likely that Scotland and N Ireland will choose to part company with England within the… https://t.co/u1tGYml8X4
‘It seems to me increasingly likely that Scotland and N Ireland will choose to part company with England within the… https://t.co/u1tGYml8X4
RT @MarkPalmerST: Interesting take on the Finn Russell saga from @jimhamilton4 in tomorrow’s @SundayTimesScot
RT @MarkPalmerST: Interesting take on the Finn Russell saga from @jimhamilton4 in tomorrow’s @SundayTimesScot
RT @thetimesscot: British history no longer resonates with young Scots and it will be a challenge convincing them to reject independence, t…
RT @thetimesscot: British history no longer resonates with young Scots and it will be a challenge convincing them to reject independence, t…
RT @jealnicola: Must-read of the week by @hugorifkind hugorifkind @thetimes today
RT @jealnicola: Must-read of the week by @hugorifkind hugorifkind @thetimes today
RT @palebackwriter: I wrote about the quiet joys of walking to work https://t.co/oqujT2KEuQ
RT @palebackwriter: I wrote about the quiet joys of walking to work https://t.co/oqujT2KEuQ
The contemptuous treatment of Scotland and the sacking of the Ulster Secretary means the Union is dying through neg… https://t.co/lCVfFM3L0A
The contemptuous treatment of Scotland and the sacking of the Ulster Secretary means the Union is dying through neg… https://t.co/lCVfFM3L0A
@Iain_L @thetimesscot @Chitgrrl @TomKitchin @palebackwriter Hi Iain: Yes it is. It’s available on all except iPad.
@Iain_L @thetimesscot @Chitgrrl @TomKitchin @palebackwriter Hi Iain: Yes it is. It’s available on all except iPad.
Like Shetland? Well you may want to catch our new lifestyle section Alba in @thetimesscot on Saturday, featuring tr… https://t.co/IqYjmgZONB
Like Shetland? Well you may want to catch our new lifestyle section Alba in @thetimesscot on Saturday, featuring tr… https://t.co/IqYjmgZONB
RT @Chitgrrl: So foodies of Scotland... as the new restaurant critic of @thetimesscot (I know, greatest gig!) I ask you: what great new/und…
RT @Chitgrrl: So foodies of Scotland... as the new restaurant critic of @thetimesscot (I know, greatest gig!) I ask you: what great new/und…
Exclusive Lewis Capaldi interview: ‘Someone You Loved is not about Paige Turley. It’s about my grandmother’ https://t.co/aRukXklzTo
Exclusive Lewis Capaldi interview: ‘Someone You Loved is not about Paige Turley. It’s about my grandmother’

https://t.co/aRukXklzTo
Lewis Capaldi and Paige Turley: You think this song is about you? https://t.co/cSCj51jOke
Lewis Capaldi and Paige Turley: You think this song is about you?

https://t.co/cSCj51jOke
RT @thetimesscot: "The Scottish economy is, by and large, treading water," writes @alexmassie https://t.co/0gbhHqkC2x
RT @thetimesscot:

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