When you have finished this chapter, you should be able to
Despite the great benefits that accrue to society through the operation of the insurance mechanism, it is self-evident that such a complicated and intricate device does not come into existence by itself. Someone must estimate the probability of loss, collect the funds necessary to compensate those who suffer loss, make payments for the losses that occur, and provide for the general administration of the program. These are the functions performed by insurers.
A basic distinction may be made between private and government insurers. To a limited extent, historically in this country and to a considerable extent abroad, governmentally organized and managed insurance organizations have offered insurance ...