8/31/15

*If you have a risk
*You find an insurance company to insure it
*You pay them a premium to cover that risk
*If the risk you are insuring comes to pass
*You file a claim with the insurance company
*If they agree that your loss matches the risk they insured against
*They then pay you

*However, if you have a risk
*Then fail to find or pay an insurance company a premium to cover it
*Then you suffer a loss due do the risk you didn’t insure
*You then can’t expect any insurance company to pay for your loss, simple as that.

Definition of Insurance: An arrangement or agreement that protects someone from incurring future losses, as from damage, theft, illness, or death, especially a contract that transfers the risk of a specified loss to another party in exchange for the payment of a premium.

Well recently a group of 4 individuals called to my employer to insure a risk. Two were offered coverage since they meet the underwriting guidelines and paid their premium. Two were declined since they didn’t meet the guidelines, so they in turn paid no premium. Then the risk that was insured came to pass. The two who paid the premium, submitted claims, they were reviewed. It was agreed that this was the risk we were covering and was paid. However they also submitted claims for the two who did not qualify for the insurance also looking for payment, that payment was of course declined. They then implied that during the phone conversation with our company we told them that they would also be covered. Even though we had clearly declined to do so and they had not paid us for the coverage to make a binding contact, all of which they were well aware of. Since this was not our first time on the merry go round, the phone call was of course recorded. Upon doing our due diligence we listened to the call, it was clear that this was never said and we advised them of that fact. Despite the actual proof that these two individuals were never offered coverage they still demanded we pay and actually stated, “since it is not a lot of money, we should pay it regardless”. When they were advised this was never going to happen, they got real upset and threaten to start a blog to trash us. Usually people threaten us with a lawyer, but they knew they had no case. We asked them if they do create a blog, to please inform us when it is up so we could place comments on it.

Even when faced with the reality and facts, these people still believed they were entitled to something they had never paid for. It’s like trying to add collision coverage to your car after the accident has happen. Why would the insurance company pay for your damage when you never paid them to cover the risk? People are just that greedy! We declined coverage and they still believe we owed them. As one of my co-workers, who is from another country, pointed out, you Americans believe you’re entitled, so true.