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Insured Event

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Insured Event
Any event that would cause an insurer to pay a claim. For example, in car insurance, an insured event may be a car accident because it would cause the insurance company to compensate the policyholder for property damage and/or medical bills. Insurance companies base their premiums on the likelihood that an insured event may happen. For example, a younger driver may pay a higher premium than an adult because younger drivers may be statistically more likely to cause an accident.


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The business model of insurers is fundamentally different from that of banks because their liabilities are not payable on demand, since they generally require an insured event," said Kurt Karl, Swiss Re's chief U.
In any other setting, if an insured event occurs, a person pays for a service and is then reimbursed by his/her insurance company (or signs over insurance company reimbursement to the provider).
But not all travel insurers are paying out compensation to policyholders who were caught up in the travel chaos, as problems caused by volcanic ash are not stated as an insured event under most policies.
 
 
 
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