In addition, there are independent companies with prosecutors and average adjusters. Their job is to investigate and report to their leaders how they should solve it. However, insurance companies may also seek help from other experts, such as legal advisers, doctors and engineers.
An insurance system is to redistribute all losses from the cost of each advanced payment to complete the loss. On the basis of paying extra fees in exchange, the insured will get the promise of the insurance system, that is, the losses caused by it will be compensated. In most insurance systems, only a small number of the insured will suffer losses. Therefore, the insurance system redistributes those unfortunate few people who insure everyone and pay extra fees.
The reason why the insurance system can operate and reduce losses is that all policyholders are willing to replace them. It is generally believed that most people will look for the possibility of suffering heavy losses from unpleasant eyes. Therefore, people are willing to pay for an uncertain loss, reduce the insurance premium, and add compensation if the loss really occurs. Therefore, even if there is no loss within one year, like most of the insured, the value is still reduced or removed from the unpleasant mentality, anxious about the loss.
A contract is a legal agreement. All insurance must be purchased by contract. Because the contract system must be established on a good legal basis, the knowledge of contract law is very important for understanding insurance. This course announces the basic aspects of contract law, which shows all the differences between other contracts and insurance contracts.