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Do you know these 10 claims terms?

If you earn a living from insurance, language is important for the sales process, during underwriting, and also at the point of claim.

By Barry Zalma | Updated on September 18, 2015

Insurance was created to spread risk from individuals to multitudes. Spreading the risk from one person to many is the essence of insurance. The risk-spreading model has taken many forms over the centuries.

In the days of sailing ships and galleys powered by slaves pulling on oars, merchants found shipping to be inherently risky. The risks of shipping by sea were clearly too much for an individual merchant to bear. The loss of one ship could bankrupt a merchant, so the merchants spread the risk of their business enterprises among each other. With rudimentary insurance, the risk of shipping was equitably spread among those subscribing to the loan, and no single merchant suffered when a ship was lost at sea. 

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