|
Insurance
I’m sure we’ve all heard of the word, and
have an idea of how it works. Is it a concept? Idea? Is it something
concrete or abstract? It depends on the context of the situation. A quick,
simple definition of insurance could be as follows: Reimbursement in a
situation of loss. Usually, someone decides that insurance is needed. In
order for the concept of insurance to arise, a pre-payment of some type is
required. In the case of typical, everyday general auto, health and life
insurance, for example, the pre-payment is in the form of a premium. Prior
to the eve of the year 2000, thousands of people flocked to the stores,
stocking up on numerous supplies. They feared that something catastrophic
was going to take place once the clock struck midnight, and if so, they
wanted to be prepared. Isn’t this a form of insurance? Sure- in its basic
definition. The supplies they purchased would act as reimbursement in the
case of loss.
Early insurance goes back to the Egyptian times. It was known that around
3000 BC, Chinese merchants dispersed their shipments among several vessels
to avoid the possibility of damage or loss. There are some insurance
companies around today in the United States that provided insurance back in
the mid 1700’s, as well as some that provided relief to banks during the
1930’s and the Great Depression. Today, there is insurance for many aspects
of daily living: Business, Auto, Health, Life, Travel. Each of those
categories include sub-categories, branching off into numerous divisions.
|
