Indemnification

"Indemnity Obligation" means to return all, or, to the position may be restored, that was, if possible, before the occurrence of a specific event or threat. Consequently, life insurance is typically not as liability, but "conditional" insurance (ie a claim on the occurrence of a particular event). There are generally two types of insurance policies that seek to compensate an insured:

1. a "compensation" policy and
2. a "pay on behalf" or "on behalf"  policy.

The difference is significant on paper, but rarely material in practice.

An "indemnity" policy will never pay claims until the insured paid out of pocket to third party, such as a visitor to your home slips on a wet floor on your left and you complain for $ 10,000 and wins. would have to pay a "compensation" policy the homeowner to come up with the $ 10,000 for the visitors would fall and then "compensated" by the insurance carrier for the out of pocket expenses ($ 10,000). 

In the same situation a "pay on behalf" policy, the insurer would pay the claim and the insured (the homeowner in the example above) is not out of pocket for everything. Most modern liability insurance is written on a "pay on behalf" language.

A company is looking at the risks (individuals, firms or association of any kind, etc.) the transfer of the insured 'party once risk by "insurance", the insurer taken over by a contract called an insurance policy. In general, an insurance contract includes, at a minimum, the following elements: identification of the parties (the insurer, the insured, the beneficiary), ie the premium, the period of coverage, in particular incident, the amount of coverage (the amount of the insured or beneficiary to pay in the event of a loss) and exclusions (events not covered). A claim has to say, "offset" will be covered against loss in politics.

If the insured experience a loss for a given risk, the cover gives the policyholder a claim against the insurer for the amount of damage is covered, how it implements policies. The fee paid by the insured to the insurer for assuming the risk is the premium. Insurance premiums for many policyholders will be used to account for future payment of claims reserve funds - in theory for a relatively few claimants - and for overhead costs. As long as an insurer adequate financial resources for anticipated losses (the reserves) set, the remaining profit margin of an insurer.

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