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United States Insurance Industry

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Question 1: How big is the insurance industry in the U.S.A. today? How does this industry affect the U.S. economy in general?
In the “United States there is over 6,000 insurance companies and there are 2.3 million employee working for this industry” (Vaughan, E. J pg.71). The insurance market with a premium volumes over $1.5 Trillion a year. The insurance industry is the majority of the United States economy. In the United States insurance is encouraged, an individual can’t buy a cars, a house, or a business, without giving the loan company verification of full coverage or proof of resources, to ensure against loss. In many states it is unlawful to not have insurance on your home, company or vehicle. The consumer risk penalties if these …show more content…

Most people can't manage the cost of the doctor’s office visit without medical coverage, not to mention a visit to the ER or a stay in a hospital. Paying a monthly premium instead of the whole doctor's visit expense, helps an individual not worry about other expenses that may come up later. Life insurance continues to provide for various families that have lost a family member. When an individual is experience a loss, insurance companies can guarantee the insurer that they have a safeguarded. In most cases having insurance can ease worries and the individual will have the ability to receive money, and are eligible for the insurance company to make payments for doctor's expenses, and compensate for the loss work …show more content…

By providing money to the individuals who have become unemployed it gives the insurer peace of mind knowing there is some income coming in to pay the bills. As indicated by the Department of Labor, unemployment insurance assisted 17 million individuals in 2014 and kept 4.2 million people from going beneath the destitution line which is not hard to do. Laborer's Compensation insurance can spare employments and help the economy also. (www.dol.gov) At any given point when an employee gets hurt, the insurance company kicks in and the injured party does not lose their income while they are unable to work. And the business which the employee works for does not lose profits.
Insurance agencies also contribute a portion of the surplus premiums to give financing to land endeavors, for example, townhouses, apartment buildings and retail opportunities like malls and business office buildings. They additionally put resources into stocks, securities, mutual funds. Essentially, without insurance agencies, our economy would cease to exist, society may complain about the insurance venue, but without it this nation would be in

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State Farm is a very well known insurance company. They are known for their great coverage and rates; along with many other discounts that they offer to customers. They are at the top of the game against other insurance companies that they compete with. They have many various ways that they advertise to get people to come and get insurance from them. They range from funny to more sentimental types of advertisements.

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In the other cases, the actions seem to happen due to negligence from the providers. When the business tries to reduce the amount of injuries, the contract is protected. The employees in the McCune vs Myrtle Beach Indoor Shooting Range case, the employees tried to fix

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The National Flood Insurance Program (NFIP) was established in 1968 to address the U.S.’s flood exposure and the challenges inherent in financing and managing flood risks in the private insurance market. Private insurance companies at the time claimed that due to the correlated nature of the flood peril, it was an uninsurable risk and it could not be underwritten in the private insurance market. (King; Congressional Research Service). Although the NFIP has been effective in making flood insurance widely available, the program has encouraged homeowners to buy recklessly in areas that are the most prone to flood damage (Matthews; TIME.com). Today, the NFIP holds $1.2 trillion in loss exposure but collects only $3.5 billion from its policyholders,

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The Cost of Inaccuracy The cost of inaccuracy is seen when a claim is denied. At some point in the billing process, accuracy went to the wayside. It could be a simple entry error or a ton of services that the policy doesn 't

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If this occurs for more.than 30 days then their business may be closed down. The employers have two choices of how they will pay for the health insurance. They can either pay the entire premium or they can share the expenses with their

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Life Care Planning in Medical Malpractice Claims By Roger. Adams Apr 1, 2012 Life care planning is a prediction of the medical and medically related needs and costs of an individual with a catastrophic condition for the remainder of the individual's life. A life care planner will work with treating physicians and examine past medical records to examine a case and recommend services, treatments, and equipment for the patient, all in an effort to project that patient's needs and costs of future care. Factors such as aging and life expectancy are taken into consideration, as is the patient's support system. The overarching goals of a life care plan are to ease the burden of the patient's illness or injury, foster quality of life, and address

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Unemployed while Pregnant Unemployment insurance is a program provided by the federal government. It was created to help people who are without a job due to something that is out of their control. If you are approved for this benefit, then you will get part of what your wage was while you were working. There are a numerous things that can disqualify you from collecting unemployment.

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This leads to a conclusion of Strong Competition in the Auto Insurance Industry. 2.2 PESTLE ANALYSIS Political Factors Currently there are no as such political issues relating to the auto insurance industry, but in the future if government plans to impose any law regarding to auto insurance like it did before stating that every driver is supposed to purchase car insurance. However, this increased the car insurance sales, benefitting GEICO so wouldn’t be considered as an issue. Economic Factors

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When making the decision to go, I considered whether the risk to my safety justified the costs that I might incur. This situation is not unique; it is prevalent throughout society. Regardless of insurance status, people think about whether their illness is severe enough to warrant seeking healthcare. However, patients that seek help early and often are more likely to have good outcomes in treatment. Increasing patient comfort does not only mean addressing shortages and diversity but also by making the financial aspect less of a black box.

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Health insurance is one of the main insurances ones can have in life. Without reliable health insurance any small treatment can wipe out a person financially. " health insurance is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured" as defined by Investopedia, 2015. The term ‘Health insurance’ was firstly discovered in the United States during the civil war.

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The insurance company pays by default for two days in order to stay extra day or two. Then, you have to call the insurance company to get approval to pay. The insurance company should contact the doctor to know why he/ she keep the patient in the hospital. Is she/he doing not feel well,

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Unemployment Insurance (UI) is a joint federal-state social insurance program created under President Roosevelt as part of the Social Security Act of 1935. Payroll taxes levied on employers are used to provide temporary partial replacement of wages to workers who are laid off by companies. The tax levied on employers is partially experience rated, meaning that it rises as firms have more layoffs. Despite being both a federal and state program, it is mostly run by the states. Each state is free to determine their own eligibility criteria, the maximum amount of benefits that can be received, their own employer tax rates and the duration of benefits received.

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Basically, unemployment results to increased payments from both the state and the federal government to cover benefits of unemployment. For instance, the U.S government paid up to $2.96 billion worth of benefits in February, 2017. The government also has to cover to Medicaid and food assistance costs (Simpson 2017). Additionally, with high levels of unemployment, the government is unable to collect the similar amounts of income tax as compared to when the unemployment rates are low, which slows down the economic growth of the country. This is because the government is forced to borrow money or even cut down spending which to a large extent leads to an economic condition that is no good at all.

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Insurance companies are making a huge amount of profit. The profit that these

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It also enforces a time limit on deaths caused by an accident. In most cases, if the policyholder is involved in an accident that eventually causes death, the policy will only pay if death happens within 90 days of the accident. Most policies also specify that death must result directly from the injuries received in the accident, for example, if the insured involved in a car accident but died from an infection got in the hospital, the insurance company would not pay the

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