YOU ASK:
What is the definition of Pool?
WE ANSWER:
"Pool", when used in insurance, refers to an insurance pool. These are contributions or assets made by various insurance companies.
Insurance pools are used to cover risks that an individual insurance company could not afford to take on by itself. This means that the risk is either unique or too big for one company to handle. What insurance companies do is to pool their resources so that they have the capacity to offer a higher level of insurance. The government, to encourage such pools, also gives special incentives.
Claims made by a policy are taken from the pool, and not from the "pockets" of the insurance company.
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More insurance terms around pool:
- Pre-Existing Condition
- Preferred Provider Organization
- Preferred Risk Class
- Premises
- Premium
- Premium Reduction Option
- Premium Tax
- Premiums in Force
- Premiums Written
- Primary Beneficiary
- Pollution Insurance
- Political Risk Insurance
- Policyholders’ Surplus
- Policy Dividend Options
- Policy
- Point-of-Service Plan
- Personal Lines
- Personal Injury Protection Coverage (PIP)
- Personal Articles Floater
- Period Certain