Protected self-insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the catastrophic risk with specific and aggregate limits to an insurer so the maximum total cost of the program is known. A properly designed and underwritten Protected Self-Insurance Program reduces and stabilizes the cost of insurance and provides valuable risk management information.
Nationwide car insurance can cover you for accidents involving other vehicles, vandalism, weather, animals, bodily injuries and more. As a Nationwide member, you can select the coverage you get because our policies are customizable – you can choose the auto insurance policies that suit your lifestyle. You can have peace of mind knowing Nationwide will provide you and your car with great protection on the road.
Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen, or lost at sea.
Accidental loss: The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be pure, in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements such as ordinary business risks or even purchasing a lottery ticket are generally not considered insurable.
In the United States, the tax on interest income on life insurance policies and annuities is generally deferred. However, in some cases the benefit derived from tax deferral may be offset by a low return. This depends upon the insuring company, the type of policy and other variables (mortality, market return, etc.). Moreover, other income tax saving vehicles (e.g., IRAs, 401(k) plans, Roth IRAs) may be better alternatives for value accumulation.
Personal injury or bodily injury protection, which is often a part of full coverage car insurance, covers medical costs for you, your passengers, or other people injured in an accident. This type of coverage is required by most states, but keep in mind that the legal requirement may be too low for real world application. As medical costs soar, a policy that only pays out $30,000 is not likely to be enough, and you will be responsible for any difference between what your policy pays and what the actual medical costs are. It’s tempting to skimp on this coverage, but that can be a costly mistake.
Today we still answer to our members, but we protect more than just cars and Ohio farmers. We’re a Fortune 100 company that offers a full range of insurance and financial services across the country. Including car, motorcycle, homeowners, pet, farm, life and commercial insurance. As well as annuities, mutual funds, retirement plans and specialty health services.