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Insurance quotes

Principles of creation and formation insurance quotes in the USA

Insurance in the United States is not just a way to protect against possible risks. Active advertising campaigns of insurance agencies at one time supplemented the image of the American dream, which was forced at the end of the last century through the mass media. The high standard of living also contributed to the growth in demand for all insurance services in the country. Therefore, despite the high insurance quotes, the number of people wishing to use insurance companies is growing day by day. 

The peculiarities of American insurance

The insurance market in the United States consists of two types: life insurance and other types of insurance (property, liability). Property and liability insurance in the United States occupies almost half of the world market – 46%. In total, 4 thousand life insurance companies operate in the country and 4.5 thousand – for property and liability insurance. Insurance quotes determined by companies depend on many factors.

A feature of American insurance is the presence of insurance brokers and agents in the insurance process – not a single transaction goes through directly. Besides, insurance is the only industry not covered by antitrust laws. 

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Also, insurance quotes are influenced by the presence of competition:

  • High competition in the market is limited by a strict criterion of market access – the availability of capital of a certain level.
  • External competition – from banks – is limited by the state through control over the conduct of related operations by banks.

Insurance regulation in the US

The regulation of the insurance industry at the state level is expressed not only by providing only solvent companies in the market but also by the availability of insurance services for all categories of citizens, regardless of nationality, place of residence, and other factors characteristic of US policy. Therefore, when forming insurance quotes, absolutely everything is taken into account.

In general, state regulation of insurance is carried out at two levels:

  1. regulation of the solvency of insurers;
  2. market regulation.

If regulation of solvency is based on control over capital and investment, then regulation of the market mainly affects the pricing policy of insurance companies. The National Association of Insurance Commissioners carries out supervisory control over the activities of insurers as well as insurance quotes. 

SS and SSN

Insurance in the United States is the responsibility of all citizens. Despite the relatively high insurance quotes, all legal immigrants are also required to provide themselves with Social Security (SS). 

SS is a general insurance system designed for working citizens and immigrants. It does not cover medical expenses. Every employee or entrepreneur regularly pays interest to the SS fund, which provides material assistance to the most vulnerable groups of the population: 

  • the poor;
  • pensioners;
  • orphans.

This certainly decreases insurance quotes for particular categories of people. 

SSN (Social Security Number) is a unique 10-digit number assigned to everyone who legally lives and works in the United States. It is advisable to get an SSN immediately after arriving in America. Yes, you might be surprised at the high insurance quotes in this country. But, this is a mandatory procedure for everyone. 

Insurance is such an open question for every person who thinks ahead about their safety and standard of living in the end. Therefore, even if the insurance quotes are more than high, it is not worth saving on this. After all, this applies not only to your life, but also to the life of your loved ones.

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