Attorney-in-fact
Attorney-in-fact this insurance is not running as a hobby. Although sometimes he hired, but he usually paid a percentage of premiums collected. On some insurance reciprocal exchanges, this percentage may be hanya5%, but companies that pay operating fees. Reciprocal exchange insurance in another, the percentage is often times reach 35%. Of the 35% of these lawyers should pay all costs inside the company unless the costs associated with the losses – losses, costs of determining the magnitude of the losses, taxes, and fees, which will be paid from the remaining 65%. How about the rest of that 65% of these unused claims for the payment of claims or expenses if dang that 65% is not sufficient to cover the fees? This is where the variations occurred between reciprocal exchange insurance differentiates form its base. In its simplest form, a surplus is shared between each Member, because actually there is no surplus of the group. If the funds – funds are not sufficient, then each participant determined its obligations each to a number of agreed upon in the Subcriber's agreement. But because most of this surplus funds required to recoup the investment and to flatten claims outstanding and also to finance business expansion, the company typically hold the fixed portion of the surplus being donated by each participant. For example, a reciprocal exchange insurance, based in New York are required to compile and maintain a special emergency surplus set aside at least 1% of the net income of premium on participants (subscribers) or retrieval to participants who resigned. Reciprocal exchange insurance New York it should provide their entire assets including reserve participants to meet the claims of the insurance policy issued by the company.
Some insurance companies these exchanges, especially those that only accept car insurance, does not hold account plus held to as the wealth of the company, the participant who resigned from the company does not receive anything. The function of this insurance Exchange similar to insurance companies together, and the relationship of participants with this same Exchange insurance company with a joint insurance policy against his company. However, reciprocal exchange insurance for fire, usually maintain individual accounts and control almost the entire surplus a participant when he withdrew from the company.
Joint Insurance Company
Joint insurance company is a legal entity Organised for coverage for the owner. It is a legal entity of cooperatives that are owned by the customers.
Accounting students will probably be amazed to see the balance sheets
of insurance companies which together account net worth (capital) will
only consist of surplus and no capital stock. The holder of the insurance policy with this in many ways is the same position with shareholders. They have voting rights. When the company made, a portion of the profits that can be distributed to that in responsibility (insured) in the form of dividend policy. The rest is used to strengthen the company by building a surplus. In case of loss, the holder of the policy holder stand-with the decrease in dividends or assessment (if not prohibited by the articles of the policy), or the loss of it is absorbed by the company through a decrease in the surplus.
Insurance companies together can be differentiated according to the methods used in the setting of price premiums. At one end there is a shared assessment of pure insurance at the other end of insurance along with the eternal judgment that issue without expiration date of the policy and for a premium only. In between the two ends, there are a variety of settings and levels of prepayment premium.
