Who is a Trustee?

Let us see who is the trustee in this insurance sector:

The insurer is in the position of a trustee as it is managing the common fund,for and on behalf of the community of policyholders.It has to ensure that nobody is allowed to take undue advantage of the arrangemen.That means that the management of the insurance business requires care to prevent entry(into the group)of people whose risks are not of the same kind as well as paying claims on losses that are not accidental.The decision to allow entry is the process of underwriting of risk.Underwriting includes assessing the risk,which means,making an evaluation of how much is the exposure to risk.The premium to be charged depends on this assessment of the risk.The premium to be charged depends on this assessment of the risk.Both underwriting and claim settlements have to be done with great care.

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