Insurance In The US


In the United States, the regulation of insurance is majorly left in the hands of the state and not the federal authorities. Note that, under the McCarran-Ferguson Act, Congress exempted state-regulated insurance companies from the federal antitrust laws.

Now, all states gave an insurance department that is responsible for overseeing the insurance rates, reserves, policy standards, and the like. But some of these departments have been under fire because they were ineffective.

More so, in the US, there is public and private insurance. This is because there is a clear distinction made between private and public insurance. Public insurance comprises Medicare, social security, and temporary disability insurance.

These ones are funded through governmental plans. Private insurance plans, refer to the type of coverage that is provided by private organizations or corporations.

Some of the insurance you can get in the United States as an individual are:

•          Life insurance

It is the insurance that you offer your family or any other named beneficiary when you die. They have two types available which is the term insurance that offers coverage only during the term of the policy and will only pay off when the person dies.

And, there is the whole life insurance which offers savings and insurance that the insured can collect before they die.

•          Health insurance

This covers the cost of hospitalization, your visits to the doctor, and prescription medicines. Here the most vital policies offered by many employers are those that can cover one hundred percent of the costs of getting hospitalized.

This policy will normally contain an amount that is deductible and the insurer will have no reason to make any payments until the deductible amount has been attained.

•          Disability insurance

The disability policy gets to pay a specific percentage of the employer’s wages or a fixed amount monthly or weekly if the employer is unable to work due to illness or accident.

The premiums are reduced for policies that have long wait periods before payments are made.

•          Homeowners insurance

This policy provides insurance for losses or even damages as a result of theft, fire, and other perils. Note that, there is no policy available that routinely covers every peril. This means homeowners will need to have a look at the likely risks in the area.

These risks can range from a hailstorm, flooding, earthquake, and much more. This insurance offers decreased coverage if your property is not insured for a minimum of eighty percent of the replacement cost.

•          Automobile insurance

This is the most popularly held type of insurance that has policies that require a minimum amount in every state.

A normal automobile policy will cover your bodily injury and damages made to your property, medical payments, and attorney’s fee if there is a lawsuit and damage to the car or even its loss.

Bear in mind that in the US, one can be sued for anything. It can be a slop during a walk, harsh words spoken out of anger, or even an accident while on the field. There is a personal liability policy that covers these risks.

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