There are many overlapping methods of classifying insurance. Distinctions are made according to the risks covered, the perils covered, the losses covered, the property covered, or the policy term. Any analysis of these and other characteristics requires detailed consideration of specific insurance policies.
Often the distinction is made between private and social assurance. In this context, social insurance is both compulsory and provided by public agencies. Perhaps a better system of broad classification would distinguish between voluntary and compulsory insurance. Although many coverage's classified as compulsory insurance are provided by government, government agencies also provide some insurance that is voluntarily purchased. Conversely, some compulsory insurance is provided by private insurers. Thus the distinction between compulsory and voluntary insurance is independent of the purveyor of the coverage. Increasingly, compulsory insurance, regardless of purveyor, are considered to be social insurance.
Private voluntary insurance includes coverage's for the personal, property, and liability risks. Personal includes life disability, and medical care coverage's. Property includes coverage's for the cost of repair and replacement of property plus indemnification for the loss of use of property. Common perils include fire, windstorm, riot and civil commotion, and crime. Liability includes coverage for personal injury, and bodily injury and property damage negligently caused by persons in their business, professional, or personal activities. Other broad categories include surety bonding and credit insurance.
Governmental voluntary assurance is confined to personal and property risks primarily. One state, Wisconsin, provides life insurance in a voluntary basis for its residents. Another state provides crop hail insurance, property coverage. The U.S. government offers life insurance to veterans and servicemen through the Veterans Administration. Supplemental medical care insurance is available for retire people on a voluntary basis from the Social Security Administration under the Medicare program. The federal housing administration insures home loans for lenders. During both World Wars, the U.S. government entered the marine insurance field.
There are both state and federal compulsory insurance programs. Some are funded by private insurers, others through governmental agencies. Coverage is required for personal, property, and liability risks.
Florida Auto Insurance
