Insurance companies collect the premiums for a certain type of insurance policy and use them to pay the few individuals who suffer losses that are insured by that type of policy. Most insurance is provided by private corporations, but some is provided by the government. For example, the Federal Deposit Insurance Corporation was established by Congress to insure bank deposits. The federal government provides life insurance to military service personnel. Congress and the states jointly fund Medicaid and Medicare, which are health insurance programs for persons who are disabled or elderly.
Most states offer health insurance to qualified persons who are indigent.
Government-issued insurance is regulated like private insurance, but the two are very different. Most recipients of government insurance do not have to pay premiums, but they also do not receive the same level of coverage available under private insurance policies. Government-issued insurance is granted by the legislature, not bargained for with a private insurance company, and it can be taken away by an act of the legislature. However, if a legislature issues insurance, it cannot refuse it to a person who qualifies for it. The first examples of insurance related to marine activities.