NLIC.org

Danny Said:

what is the definition of life insurance reserves?

We Answered:

The amount of money that the insurance company is required to set aside solely for the purposes of paying the claim in the future. There are restrictions on how the company can invest this money because of its purpose. The NAIC sets most of the reserve requirements and companies who are NAIC members comply. "AG38" or "article 38" was one of the most significant changes in reserve requirements in years if you want to google it.

Kristin Said:

What is the definition of insurance agent?

We Answered:

I've reviewed the answers given so far and even though my experience working for an insurance company is not long in tenure I have had insurance since I've had to and I also understand the common sense of laws. An insurance agent is licensed by the specific state in which they are allowed to bind coverage in. Regardless of what type of insurance they write. They are also regulated by local, state, and federal guidelines to insure that the overall industry is representing the client(you), not the underwriter in an ethical manner. The difference between the types of companies you write insurance with and what they do is as about as huge as any Doctor or Lawyer. They are all professionals, they all have specialties and limitations and there are both good and bad. Your responsibility is to ask questions and if you feel uncomfortable then ask for a second opinion. If you want more info on how insurance works then ask and I will answer truthfully but understand that what you think you know about insurance is not always correct. Thank You.

Alma Said:

definition of insurance?

We Answered:

...I know where you are going with this... and it's a nightmare.

Life Insurance is actually "death" insurance... think about it... It's doesn't pay till you're DEAD... tell that to your Met "Life" agent...

The word "Insure" is to make sure...to be certain... (what a joke)... Automobile "insurance"... it doesn't insure that you'll be safe... it only pays "after the fact" (of the crash) and only if "they" have determined that you were "covered"...

Corporate America is "tossing the dice" with your life...and you get to "pay" for their time at the "tables"....

The list goes "on and on"... I'm sure you get the picture...

Mitchell Said:

How does forced "pre-existing condition" insurance work?

We Answered:

What is not to understand? It simply means an Insurance Company would not be allowed to exclude a person from buying insurance due to a pre-existing condition like Diabetes, Cancer etc. Things like this already happen in certain states where Insurance carriers can't ask if a client has AIDs for example.

Why do you think it is okay for Insurance companies to have you pay them premiums for years and then when you get sick they can drop you and you can't buy insurance again. It kind of defeats the reason for having Insurance doesn't it?

Sharon Said:

What exaclty are the purpose and definition of INSURANCE?

We Answered:

Insurance was invented in the 18th century, at a time when the sea trade was very profitable, but still quite risky. To 'spread the risk' investors would buy insurance on a given ship, many ships would be insured, only a few would be lost, and the payout to for the lost ships would generally be less than the combined purchase of insurance on all of them. The insurer made money, those who lost a ship recouped some of thier investment, and those who didn't lose thier ship (most of them) lost money on the deal.

Insurance is a zero-sum game. Nothing is produced, not even a 'service.' Rather, wealth is re-distributed from those who do not experience the problem they insured against to those who do.

There are only two differences between insurance and socialism. 1) it's voluntary and (2) someone makes a profit off it.

Of course, when the government makes insurance mandatory, the only difference between insurance and socialism is that there's an insurance company skimming off the top, instead of a 'party' skimming off the top.

Diane Said:

What is the definition of insurance?

We Answered:

Insurance is a form of risk management. Basically, you are hedging your bet by allowing another person or company to take on the risk for a fee. The company measures out what the risk is (the odds of whatever you are insuring against happening) and charging a fee for it.

Basically, you pay a small loss to prevent a large, possibly devistating loss, if something happens.

For example: I have a critical illness policy with return of premium at age 65 and on death (they give me my money back if I make it to age 65 or if I die). I will pay a total of $12,012 for that policy from the time I bought it (when I was 27) until I hit age 65 ($77/monthX 33 years) that I will get one of the 24 covered illnesses (including cancer, stroke heart attack, etc). If I do get it they pay me $100,000. I'm paying $12,000 to protect me against a $100,000 loss if something serious happens. With odds being greater than 1 in 3 of getting cancer alone plus a family history of cancer and heart disease and I'm overweight, chances are high that I will make a claim on one of the diseases (which is why I'm paying $77 rather than the $50 or so for a normal person without a family history). If I don't I get my money back. It's a pretty good bet on my part, and infact with the return of premium, it's really a no brainer. If I don't get sick, the only thing I lose is the interest I would made over the 33 years (even if I made 10% on $77/month that's only $30,000, minus the taxes off that and it's even less), which would amount to no where near enough money to cover a $100,000 problem and give me peice of mind of knowing that things will be fine if something happens.