insurance

=__Insurance__=

=__What is Insurance?__= Insurance is a type of risk management where people are reimbursed in case of some form of loss. So basically insurance is the “transfer of the risk of a loss from one entity to another in exchange for a premium.” Insurers are people or companies selling insurance. The insurance rate is used to decide how much the premium is. The premium is how much a person is to be charged for a set amount of insurance = =

=__History of Insurance__= Early forms of insurance were performed by Chinese and Babylonian traders in the 3rd and 2nd millennia BC. In the 3rd Millennia BC Chinese traders who were crossing river rapids would place their goods in different ships so that if one ship sank they would not lose everything. In the 2nd Millennia BC the Babylonians created a system that was practiced by Mediterranean traders. If a trader received a loan that would help fund his shipment the trader would then have to repay the lender of the money the sum plus a little extra. This also meant that the loan would be cancelled if the shipment happened to be stolen. 1000 years on the people of Rhodes invented General Average. Traders who had goods that were being shipped together would pay a proportional premium which would then be used to repay any merchant whose goods were lost or damaged. In 600AD the Greeks and Romans created health and life insurance. Guilds called Benevolent Societies were formed which paid for the funeral and took cared of the deceased’s family. In 1666 the great fire of London destroyed 13,200 houses and in the aftermath a man named Nicholas Barbon opened an office that would insure buildings.

=**__Extra__**= Insurance is extremely reliable, with just cause. If the payments are continuous and legal and there are no discrepancies life insurance will be paid unless there is suspicion of foul play. Health insurance, as we have all seen on documentary Sicko, can be hard to get however if you do happen to gain it you will not be let down. Insurance is easily accessed if you have the right criteria. Insurance companies will not insure someone they don't think can make payments or be able to keep up. Health insurance people will not insure people that are sick or have a high probability of getting sick. It is also unlikely that smokers, drug addicts and so on will be insured. It is unfair and possibly unethical to not insure people who have a high risk of becoming ill such as people whos parents or grandparents have had cancer.