Sentinel Event Reporting



Sentinel Event Reporting

Module 3

Insurance

Insurance is the activity consisting in exchange for the collection of a contribution or premium, to provide a predefined delivery, usually financial, to any individual, association or corporation upon the occurrence of a risk. Insurance is an economic relationship, which involves at least two sides (two people). One side (the subject) is an insurance organization (public, private or joint-stock), which is called by the insurer. The insurer works out the terms of insurance (in particular, agrees to indemnify the insured for damage to insured event) and offers them to their clients - legal entities (companies, organizations, institutions) and individuals (individual private citizens)(Maniloff & Stempel, 2011). The relationship between the insurer and the insured, determining exactly how to form an insurance fund and how it is spent, is a method of creating insurance products. In the process of historical development was worked out three methods for the creation of insurance products - self-insurance, mutual insurance, commercial insurance.

Article 5 of the Law "On Insurance" refers to the fact that insurers are legal entities and capable individuals who have concluded contracts with the insurers of insurance or are insured by the law. If the insured event (natural disaster, the fall of man with a broken, etc.) under which the insured damage (economic or health), the insurer in accordance with the terms of the contract pays the policyholder compensation, compensation. Of the analyzed definitions that govern the insurer and the insured the insurance contract special economic relationship. Insurance coverage can be defined as the perceived need for physical and legal persons to establish special insurance fund for the restoration of property, health, disability and personal income as the participants in the creation of these funds, as well as third parties (Maniloff & Stempel, 2011).

In insurance contracts, there are reciprocal ...