services, and there are 9 major institutions. The institution that we are going to focus on is
insurance companies. Insurance companies are important for a variety of different reasons. When
a person acquires insurance, the risk is transferred over to that specific insurance company. Once
a contract is signed between the two parties, the one party, an individual, will have to pay a
premium each month to the insurance company. Now if any event would take place, the
insurance company would then pay a lump sum to the individual to cover the damages. When it
comes to different types of insurances, if you name it, it most likely is a type! Some different
types are health insurance, auto insurance, life insurance, home insurance, liability insurance etc.
We will discuss all the different types of insurances, their functions, statistical facts, funds and
the history of insurance companies in the rest of this paper!
As stated above, when someone thinks about insurance, generally they think of auto,
health, life, home-owner’s insurance etc. There are many different branches of insurance, all
particularly designed to protect an individual from a loss. Auto insurance protects against loss
that has to do with a person’s vehicle. This loss could be due to an accident or theft. The most
common insurance companies involving this are Allstate, Progressive and State Farm. With this
insurance, there are three sectors that are part of it which are liability, property and medical.
Liability will cover damages to the vehicle, property and the individual. Property will cover
damages to the all vehicles involved to a certain degree while medical covers health expenses if
it reaches that point. This could include ambulance trips, ER visit, rehabilitation etc.