Concept in Definition ABC

A insurance carrier, also designated in some parts ascompany insurance , It may be a person physical or a company that deals with the insurance of risks to third parties, that is, its main activity consists of protecting those tangible assets from certain risks to which they are exposed.

The aforementioned work will be agreed and established in the so-called contract for sure, which is an agreement from which the insurer, in this case the insurance company or insurer, undertakes to compensate for damage or to pay a sum of money agreed in a timely manner to the other party, called as a taker. For such benefit, the policyholder is obliged to pay the insurer a value and then, in exchange, the insurer will provide the appropriate coverage.

The primary mission of the contract is to economically protect goods or individuals that are plausible of suffering some damage in the future, while the conclusion of the contract guarantees the coverage for any eventuality that happens and also the policyholder is freed from having to face a lawsuit for economic damages that actually involves a sum of money burdensome. This contractual relationship with the insurer ensures that you are protected in exchange for a defined fee or premium.

Both the conditions of the contract and the obligations and rights arising from it will appear overturned and specified in a document which is popularly known as policy for sure.

It turns out to be a sine quanom condition that the insurer always has a margin considerable solvency to meet the commitments contracted with the policyholders, if the need arises to to intervene. Thus, the special reserves that are those with which they deal with harmful events are invested by the insurer in real estate, titles or values furniture, among others resources.

It should be noted that together with the banking and securities markets, insurance companies constitute the pillars of a financial market.