The policy holders are actually the insurance companies. How insurance works is that people pool their moneu together because nobody knows who is going to have a future loss and for how much. What the insurance company does is collects this "pool" of money from the people and gives it out as needed. They also invest the money and use experts to help determine who is at greater risk for a loss.
December 20th, 2008 at 11:12 am
they take your money, invest it, pay clains with profits then increase premiums and do it all over again.
December 20th, 2008 at 11:12 am
old biker dude, pretty much hit it on the head…but need to add one thing… they are better at taking your money then paying out on your claim…
December 20th, 2008 at 11:12 am
The policy holders are actually the insurance companies. How insurance works is that people pool their moneu together because nobody knows who is going to have a future loss and for how much. What the insurance company does is collects this "pool" of money from the people and gives it out as needed. They also invest the money and use experts to help determine who is at greater risk for a loss.