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| *Ostroff, Fair and Company>>>Insurance |
What does indemnity mean? |
What does indemnity mean? Indemnification or Indemnity An entity seeking to transfer risk (an individual, corporation, or association of any type) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, defined as an insurance 'policy'. This legal contract sets out terms and conditions specifying the amount of coverage (compensation) to be rendered to the insured, by the insurer upon assumption of risk, in the event of a loss, and all the specific perils covered against (indemnified), for the term of the contract. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the amount of loss as specified by the policy contract. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many clients are used to fund accounts set aside for later payment of claims鈥攊n theory for a relatively few claimants鈥攁nd for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses, the remaining margin becomes their profit. To indemnify is to put you back in the position or return your property to it's condition prior to the loss or occurrence. Source(s): Licensed Adjuster and Agent In insurance terms, it refers to your protection amount/ what you get paid in settlement. Double indemnity (as in the film) means the settlement will be twice the amount if it meets certain criteria, usually accidental death. It means-> protection or security against damage or loss. Indemnity means a non-standard company meaning.Youre in a high risk insurance.When you are in a company called non-preffered you will pay more.When you are in a company that is preffered you get a better rate.So depending on what insurance carrier you get ask them if it is a indemnity company or non-indemnity.Indemnity company take the high risk drivers but charge them a arm and a leg.Be advised if you have more tickets then you do cars you might be in a indemnity company. insurance of risk Wow, sounds like Tunka pulled his answer right out of the book. The readers digest version is that to indemnify is to repay for damages to put someone back into the condition they were in, prior to the loss or damages. |
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