Insurance
...edictable the group losses become. When the losses become predictable, the company can set the premium. The premium: the amount you pay for insurance. Depending on the type of insurance, you can pay the premium monthly, quarterly, semi-annually or annually. The premium is not set by law. It can be different for each company, based on their own history of loss. The premium you pay is split many ways. Part of it goes to pay for the loss that is insured. Part of it goes to pay the salespeople. Part of it goes to pay the underwriters who decide if the company should issue the insurance and at what rate. Part of it goes to pay the adjustors who deal with the claims. Part of it goes to pay data processors that process all of the paperwork. Part of it pay the executives who run the company. Some of must be kept back in reserve for disasters. In some cases, some of it is invested for the insured's benift. Some of it goes to pay t...