THIS TYPE OF INSURANCE COMPANY: COOPERATIVE AND THE GOVERNMENT
Many insurance companies, which was founded as a cooperative or as a means of local governments or Central Government. This chapter will discuss the most important types of types – from insurance companies within the group.
There are two main types of cooperative organizations in the United States, namely the consumer cooperatives and cooperative manufacturer. Consumer cooperatives are usually established by those who aim to get lower prices for goods – goods and services – specific services to its members. Sometimes the consumer cooperative was established to control the quality of the goods – goods or services – services for members – members.
Conversely, producers ' cooperative was founded by those who aim at
providing the market with efficient cost for its members which cannot be
obtained by other means. Examples of consumer cooperatives are organised campus bookstore for the provision of books – textbooks at a price of staple for members – members in the student. Examples of co-operative farmers organization is the producer of oranges in California that take care and trade off citrus fruits were for its members.
Both types of cooperatives is in the insurance industry. Consumer cooperatives are more numerous than on cooperative manufacturers, include reciprocal exchange insurance and insurance companies together.
Cooperative producers include insurance Blue Cross and Blue Shield
sponsored by home – hospitals and doctors – doctor Foregign, and the
American Insurance Association that handles overseas business from its
members.
CONSUMER COOPERATIVE INSURANCE
As is the case with the insurance company ownership, cooperative insurance companies can be incorporated or not. Insurance cooperative that is not a legal body called mutual insurance, while insurance cooperatives incorporated law called joint insurance company (mutual insurance companies).
Reciprocal Insurance Exchanges
This insurance was born in 1881 in New York when a group of merchants ' goods – dry goods that cost-conscious (aware) decided to do one about the lack of sophistication in the determination of the price of fire insurance at that time. That was in use that time is too broad tariff classification, where dangerous goods and hazardous not just to put in the same group and charged all of them with the same rate. Dry goods merchant of goods – it argues that they were aggrieved and decides to unite with the intention of interchanging the insurance contract, that is, they decide to take away each other against catastrophic fires.
The basic form of reciprocal exchange is as follows: a village composed of 1000 small homeowner NAE Rp 25 million/home. To a thousand home owners is forming an insurance Exchange. Respectively they have insurance for Rp 25 million over his own House. Dependents this Rp 25 million divided equally with other homeowners to 999. If a participant's home burned to the ground, then the reciprocal exchange insurance it would replace its losses. He will receive a donation of Rp 25025 from 999 participants. The influence of these reciprocal arrangements are the losses of Rp 25 million that will be in the sole gift of the affected but divided equally between 999 other homeowners.
This reciprocal exchange insurance usually operating under a trade name owned by a lawyer (attorney-in-fact). This insurance is non-profit because each Member to pay only part of the losses and expenses – expenses.
In a way, this reciprocal exchange insurance equal to Lloyd's of London that is in the event he did not issue a policy. He just gave the mechanism to the members to bear with one another. However, in one important aspect more, he is very different from the Lloyd's of London. The members of this reciprocal exchange insurance bear each other, so that membership is a must. But a member of Lloyd's of London members – not mutually bear to one another except for reinsurance, insurance and also receive outside parties. It is these characteristics that distinguish the reciprocal exchange insurance as insurance company underwriter at Lloyd's with a cooperative of London as the insurance company's property.
This reciprocal exchange insurance instead of a company and the firm and is also open, but the company or firm can become a member of this reciprocal exchange insurance, but the organization still remains individual.
The description above is a reciprocal insurance (reciprocal exchange) in the form of essence. Changes to the operational and legislative changes – a little bit of the number has changed the shape of the reciprocal exchange.
Reciprocal Exchange Insurance operations usually follow a general pattern. It is managed by a solicitor (attorney-in-fact), which acquired the authority of a treaty called the subscriber's agreement which is attached to the application form and signed by each participant insurance reciprocal exchange it.
Lawyer (attorney-in-fact), the main administrative and insurance
officials must carry out the functions of the qualified insurance
companies. For example, he has to supervise the selection and determination of the level of risk, overseeing the distribution of contracts between the members, takes care of recording, determine the magnitude of the losses (adjust losses) and handle financial issues. Attorney-in-fact is often controlled by an Advisory Committee that is elected by the members.
