Individual Members

There are a number of principles of insurance. The majority of insurance policies are offered for individual members of very high classes. Automobile insurance, for instance, enclosed about 175 million automobiles in the United States in 2004. The continuation of a large number of homogeneous introduction units permits insurers to get advantage from the so-called “law of large numbers,” which in consequence states that as the number of contact units enlarges the definite results are ever more likely to turn into close to probable results. Lloyd’s of London is well-known for insuring the life or health of actors, actresses and sports figures. Dependency launch insurance coats events are rare. Large profitable property policies may insure excellent properties for which there are no ‘homogeneous’ contact units. In spite of failing on this principle, many exposures are usually considered to be insurable.