Lesson 15 Insurance A brief survey of insurance literature (文献，图书资料) reveals (shows, indicate) differences of opinion concerning how the term should be defined. In whatever way the term is defined, insurance is a social device（mechanism 机制） in which a group of individuals transfer risk （转移风向） and provides for payment of losses from funds contributed by (devoted by, given by) all members w ho transferred risk. Those w ho transfer risk are called insureds/assured. Those who assume ( 承担) risk are called insurers/underwriter/insurance company. Insurance is a risk transfer mechanism, whereby the individual or the business enterprise can shift (transfer) some of the uncertainty (不确定性) of life onto the shoulders of others. In return for a known premium(保费), usually a very small amount compared with the potential loss, the cost of that loss can be transferred to an insurer. Without insurance, there would be a great deal of uncertainty experienced by an individual or an enterprise, not only as to (about) whether a loss would occur, but also as to what size it would be if it did occur. For example, a house-owner will realize that each year several hundred houses are damaged by fire. His uncertainty is whether in the coming year his house will be one of those damaged, and he is also uncertain whether, given that ( 假 如 ) he will be one of the unlucky ones, his loss will amount to (reach 达到) a hundred dollars or so for the redecoration of his kitchen or whether the house will be gutted and cost him thousands of dollars to repair. Even though the probability of his house becoming one of the loss statistics is extremely low, the average house-owner will nevertheless sele...
VIP
