As Table 21.1 shows, four of the five largest life insurance firms are mutual companies. Careers in Insurance . Insurance companies form one of the largest industries in the United States. Careers in insurance generally fall into two categories. In the sales category, individuals can work as employees for insurance companies or as independent agents.
Administrative employees work to meet the needs of the firm's customers.
A part of effective risk management is to ensure that, when insurance is purchased, the coverage is proper for the individual situation. Three questions can be used as guidelines in this regard. Fire insurance covers losses resulting from fire. A coinsurance clause is a part of a fire insurance policy that requires the policyholder to purchase coverage at least equal to a specified percentage of the replacement cost of the property to obtain full reimbursement for losses. Extended coverage is insurance protection against damage caused by wind, hail, explosion, vandalism, riots or civil commotion, falling aircraft, and smoke.