Web Bounty » General

Financial Infidelity: What Is It?

news — Mon, 17 Jan 2011 01:40:00 +0000

Although many are not familiar with the term financial infidelity, it has increasingly become a difficulty in many households across America. So what exactly is financial infidelity? Financial Infidelity occurs when one person in a committed relationship spends or hides money without disclosing it to their partner. More information: Read More

Financial Lessons From The Rich (Part 2)

news — Sun, 16 Jan 2011 06:40:00 +0000

In part one of “financial lessons from the rich,” I did affirm everyone can be rich, however not everyone will be rich. Why? Since though everyone desire to be rich, just a hardly any – who later on become the rich ones, really pay the value to richness, which usually includes the application of wisdom and sacrifice, the kind of sacrifice that leads to financial freedom. More information: more info

Taking Care of Oil Tank Removal

news — Tue, 18 Jan 2011 19:00:01 +0000

In NJ oil tank removal is necessary for homeowners that are upgrading their house heating system. Buried in the ground following to the house the older oil tanks pose a threat to the environment and must be disposed of by professional cleanup crews. More information: Read More

Stainless Steel and High Carbon Steel

news — Tue, 18 Jan 2011 02:30:02 +0000

Heat treatment to steel is often said to be using heat to modify the functions or condition of steel. Heat treatment is the action for heating up steel to a targeted temperature, soaking at that temperature then lowering it. More information: click here

EFRBS Pension Benefits for Employees

news — Tue, 18 Jan 2011 00:10:02 +0000

An EFRBS pension is an unregistered employer financed pension scheme that offers more benefits to the employees of a corporation than the approved pension schemes. This pension fund is really beneficial to both, the employer and the employee. The EFRBS pension scheme provides an opportunity for the employers of companies to motivate and retain. More information: click here

Principles of insurance

Bounty — Wed, 21 Jan 2009 18:06:44 +0000

1. A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.[2] The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd’s of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
2. Definite Loss. The event that gives rise to the loss that is subject to insurance should, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
3. Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
6. Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
7. Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer’s appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.

Russia, China and the Dollar

news — Sat, 15 Jan 2011 21:10:00 +0000

China has attempted to forge alike agreements with other trade partners, however all suffer from the same shortcoming: while the Russian ruble and the U.S. dollar are freely convertible into other currencies, the Chinese yuan is not. Its exchange value is locate arbitrarily by the Chinese administration, using the dollar as a yardstick, so as to provide Chinese exporters with a decisive value advantage. More information: Read More

Thinking Solutions To Financial Problems

news — Sun, 16 Jan 2011 06:10:05 +0000

Most of us are not born wealthy. We will hit rock bottom when it comes to our finances exceptionally at times when the economy is slowly declining. This is a excellent age to hold on to whatever finances we have however if the age comes that we do get to the bottom, here are ways for you to get back up. More information: Read More

Shoe Covers – What Are They and What Are They Used For?

news — Sun, 16 Jan 2011 20:00:02 +0000

Shoe covers are a path of keeping both shoes and floor surfaces clean. They slip over the entire shoe protecting the shoe from things such as aqua, dust, mud and dirt. Shoe covers also prevent dirt from the shoe being spread across floor surfaces. This helps to prevent and control contamination in a number of industries from bakeries to estate agents. More information: click here

Tips on How to Find Quality Chinese Suppliers

news — Sun, 16 Jan 2011 12:10:08 +0000

Chinese suppliers are plenty owing to low production costs in China. If you’re interested in finding a Chinese supplier, they’re simple to find. Just visit a search engine and do a search by simply entering the designation of the product that you desire to sell in the retail market. More information: Read More