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Principles of insurance
Commercially insurable risks typically share seven common characteristics.[1]
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, proportionally the actual results are increasingly likely to become close to expected proportions. 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 the insured, 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.

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Health Insurance & Injury Update :-

Seattle Brain Injury Lawyer | Seattle Brain Injury Attorney
Brain injury, head injury, closed head injury, concussion, coma, traumatic brain injury, brain injury information

Brain Injury Lawyers - Experienced lawyers handling head injury cases for accident victims all over Washington State.

Information regarding injury to the brain, closed head injury, concussion –
A brain injury, or traumatic brain injury (TBI), occurs most frequently when the head is struck or hit by some external force. Traumatic brain injury most often results when there is a blow to the head in a car accident or fall. It can also occur when the head is thrown back and forth in a collision, without striking any object, if the brain hits the inside of the skull with some force.

Of all types of injury, traumatic brain injuries are among the most likely to result in death or permanent disability. Each year more than 80,000 Americans survive a hospitalization for traumatic brain injury but are discharged with TBI-related disabilities. An estimated 5.3 million Americans are living today with a TBI-related disability. Twenty-two percent of people who have a TBI die from their injuries.

The majority of traumatic brain injuries are caused by accidents, often leaving the injured in a financial crisis. The injured are sometimes unable to care from themselves or earn a living. It is estimated that persons suffering a severe traumatic brain injury may incur between 600,000.00 and 1.9 million dollars in long-term rehabilitative care. With this in mind, a qualified lawyer with extensive experience in handling traumatic brain injury cases should be hired as quickly as possible to seek the compensation you and your family need. Our lawyers have experience with cases involving both mild and severe brain injuries, including a $3.1M settlement, believed to be the largest settlement in the history of Mason County.