《经济学专业英语教程(第三版·下)》Unit-6

Unit6Text:Insurance（保险）1.Keywords2.Definitionofinsurance,uninsurablerisksandinsurablerisks3.Guidelinefordeterminingwhetheralossisinsurable4.Premiumanddeductibleclause5.Insuranceinstitutions6.Basicconditionsforshapingofinsuranceinstitutions7.Questions1.KeywordstermsofthecontractuninsurableriskinsurableriskinsuranceunderwriterindividualpolicyholderactuarialinformationThelawoflargenumbersinsurancepremiumsinsurancepolicydeductibleclauseretirementbenefitssocialsecuritylump-sumpaymentmedicareprogramcompensationinsurancerehabilitationservicestockcompanymutualcompanyfromhumblebeginningsethicalconduct2.Definitionofinsurance,uninsurablerisksandinsurablerisksDefinitionofInsurance

Insuranceisawrittencontract,takenwiththeinsuringcompany,thattransferstheriskoflosstotheinsureraccordingtothetermsofthecontract.DefinitionofuninsurablerisksIfaninsurancecompanywouldhavedifficultycalculatingthelikelihoodthatlosswouldoccurbecauseofsomerisk,itisreluctanttoinsureagainstthatrisk.Risksofthistypearegenerallyreferredtoasuninsurablerisks.DefinitionofinsurablerisksAninsurableriskisoneforwhichlikelihoodoflosscanbecalculatedandthatmeetstherequirementssetbymostinsuranceunderwriterstobeinsurable.3.Guidelinefordeterminingwhetheralossisinsurable3.1Theindividualpolicyholdermusthaveaninsurableinterest3.2Thelikelihoodoflossneedstobepredictable3.3Theamountoflossmustbefinanciallymeasurable3.4Thelossesmustbefortuitous(accidental)3.5Theriskshouldbedispersed3.6Theinsuredmustmeetcertainstandardstoqualify3.1TheindividualpolicyholdermusthaveaninsurableinterestThissimplymeansyoumustactuallysufferthelosstobethebeneficiaryoftheinsurance.3.2ThelikelihoodoflossneedstobepredictableInsurancecompaniesemploypeoplecalledactuariestopredictthelikelihoodoflosses.3.3TheamountoflossmustbefinanciallymeasurableSomelosses,likethelossofalife,arenoteasilymeasured.Forsuchlosses,insurancepoliciesarewritteninspecificamounts.Otherpolicies,wherelossesandthelikelihoodoflossesaremoreeasilymeasured,maypayfortheamountoftheloss.3.4Thelossesmustbefortuitous(accidental)Insurancecompanieswillnotpayforlossescreatedbythepolicyholder.3.5TheriskshouldbedispersedInordertocoverrisksandpayforthelossesincurred,insurancecompaniescountoncollectingpremiumsfromagreatnumberofpeoplewhosuffernolosses.Thisiscalledthelawoflargenumbers.3.6TheinsuredmustmeetcertainstandardstoqualifyTheinsurancecompanyhastherighttosetstandardsinordertolimittheriskofloss.4.Premiumanddeductibleclause4.1Definitionofpremium4.2Deductibleclause4.1DefinitionofpremiumWhenyoupurchaseinsurance,youbuyaninsurancepolicy.Thisisyourcontractwiththeinsurancecompany.Itstateswhatlossestheinsurancecompanywillcover.Togetthiscoverage,youpaytheinsurancecompanyafee,calledthepremium.Theamountofthepremiumisbasedonthelawoflargenumbers.Insurersusetheprobabilityofaspecificlossoccurring,thelikelycostofthatloss,andthenumberofindividualscoveredtocalculatethepremiumchargedtoeachindividualinsured.Ofcoursetheinsurancecompanyneedstoincludeachargetocoveritsoperatingexpensesandprovideareasonableprofit.4.2DeductibleclauseInadditiontochargingcertainpolicyholdershigherpremiums,insurancecompaniesalsousedeductibleclausestohelpcontroltheircosts.Adeductibleinapolicyistheamountoflosstheinsuredassumes;theinsurancecompanyisresponsibleonlyforlossesthatexceedthatspecifiedamount.5.Insuranceinstitutions5.1Federalgovernmentandstateagencies5.2Privateinsurancecompanies5.1Federalgovernmentandstateagencies5.1.1Insuranceprovidedbythefederalgovernment5.1.2Insuranceprovidedbystateagencies5.1.3Otherformsofinsurance5.1.1InsuranceprovidedbythefederalgovernmentSocialsecurityisfinancedthroughataxtakenoutofemployees’paychecks;employerspayanequalandmatchingamountoftaxtothefederalgovernmenttohelpcoverbenefits.Thebenefitsofsocialsecurityinclude:

(1)Paymentsfordeath,includingasmalllump-sumpaymentandcontinuingpaymentstospouseswithdependentchildren;(2)Incomepaymentsfordisabilityifthedisabilityisexpectedtolastatleast12monthsandistotal;(3)Retirementbenefits;(4)Hospitalandmedicalpaymentsforeligiblepersonsaged65orover.Thisisthemedicareprogram.5.1.2InsuranceprovidedbystateagenciesUnemploymentinsurance

Generallytheprogramprovidessomeweeklypayments(usuallyfor26to39weeks)toreplaceaportionoflostwagesandoffersjobcounseling,training,andplacementservicestohelpworkersfindnewjobs.Theseinsuranceprogramsarefundedbypayrolltaxespaidbyemployers.Workers’compensationinsurance

Thisinsuranceguaranteespaymentofwagesandsalaries(generallyequaltoaboutonehalftotwothirdsoftheemployee’sweeklysalary)aswellasmedicalcostsandrehabilitationservicestoemployeesinjuredintheworkplace.Theseprogramsalsoprovidebenefitstotheworker’sfamilyintheeventthatworkerdiesfromawork-relatedinjury,accident,orcondition.Theemployeralonepaysthepremiumsforworkers’compensationinsurance.5.1.3OtherformsofinsuranceBank

deposits,savingsinthriftinstitutions,andaccountsincreditunionsareinsuredbygovernmentagencies.Otheragencies,suchastheFederalHousingAdministration,provideinsuranceonmortgagesandothergovernment-insuredloans.TheNationalFloodInsuranceAssociationoffersfloodinsuranceandfederalcrimeinsuranceisprovidedinsomehigh-crimeareas.5.2PrivateinsurancecompaniesPrivateinsurancecompaniescanbeeitherstockcompaniesormutualcompanies.Astockcompanyisaprofit-makingcompany.Theshareholdersownthecompany,andprofitsarereturnedtothemintheformofdividends.Amutualcompanyisanonprofitcooperative;itisownedbyitspolicyholders.Profitsarereturnedtothepolicyholdersintheformofdividendsorreducedinsurancepremiums.6.Basicconditionsforshapingofinsuranceinstitutions6.1Theeconomicsystemshouldbasicallybesystemofprivateproperty6.2Societyshouldbehighlydevelopedandindustrialized6.3Legalrelationshipsshouldbewellorganized,knowntoall,andenforcedfairly6.4Theremustbeanethicalenvironmentforinsurance6.5Inflationshouldbenomorethanmoderate6.1TheeconomicsystemshouldbasicallybesystemofprivatepropertyAlthoughinsuranceexiststosomeextentincountrieswherethetoolsofproductionareownedbythegovernmentandwherebasiceconomicdecisionsaremadebysomecentralauthority,itneverassumesgreatimportancethereasaseparateeconomicdevicetoreducerisk.Thegovernmentsinsuchcountriesassumemostoftherisksandinasenseactasonegreatinsurancecompany.6.2SocietyshouldbehighlydevelopedandindustrializedInahighlydeveloped,industrializedsociety,productiveworkersaredependentonmoneyincome.Theirjobsareusuallyspecialized,sothattheoccurrenceofsomeperilthatinterruptstheirincomeordestroysaccumulatedpropertyisoftenaseriouseconomicblow.Helpfromneighborsisusuallyimpossibletoobtaininthedegreethatitmighthavebeenavailableinearliertimes,forindividualscannottaketimeofffromtheirjobsatwill.Inthehighlydeveloped,industrializedsociety,standardsoflivingarederivedfromtradingtheresultsofone’slaborfortheresultsofothers’labor.Thisexchangeinvolvestheshipmentofgoodsoverlongdistances,whichgivesrisetomanyrisksnotfacedinanon-manufacturingenvironment.Consequently,inindustrialsocieties,methodstomeetrisksmustcorrespondinglybehighlydeveloped.6.3Legalrelationshipsshouldbewellorganized,knowntoall,andenforcedfairlyAnimpartialsystemofjusticeisanabsoluteessentialtoasoundprogramofinsurance,fortheinsurancedevicemustusuallybeeffectedbymeansofalegallyenforceablecontract.Wherepoliticalinfluence,frequentwarsorrevolutions,ordishonestyofthepeopleupsetthejudicialsystemorlawenforcement,insurancedoesnotflourish.6.4Theremustbeanethicalenvironmentforinsurance