What is "equitable distribution?

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Equitable distribution is designed to provide for the needs of both spouses as much as possible without worrying about splitting the property down the middle. But because there are so many variables, there is no set rule as to how your property might be divided.

Equitability Distribution of loss

The main function of insurance is the equable distribution of the functional losses of the few over of the many. It cannot be overstressed that the distribution of equitable, that is to say, each contributor pays an amount commensurate with the risk he introduces. There are many forms of contributing to a central pool for protection against the consequences of loss, but insofar as contributions are random or equal, these pools are not insurance as it is normally understood. The basic function of all type of insurance is the equitable distribution of loss of one into the shoulder of many. The distribution of loss is said to be equitable because each of the insured contributes to the found an amount, in the shape of premium. The amount of premium is decided by the insurers and in matter of taking they are guided by the qualitative and quantitative analysis of risk. Equalizing the good risks and bed risks by means of rating mechanism is in fact ensuring the distribution of loss equitably on to the shoulder of many. When, therefore, there is a loss, the payment of compensation is guaranteed by the insurers because such losses have already been cared for in the fund so developed by the contributions. In Insurance, each policyholder pays, in the form of a premium assessed by the insurer, a contribution to the fund established and administered by the insurer and out of that fund are paid the losses suffered by any of the insured. The main function of the insurer is thus the management of the fund and the assessment of the equitable contribution to be paid by each of the contribution. The skill acquired in the quantitative assessment of risks is the professional skill which the insurance underwriter brings to bear on the problem of economic risk. It is the contribution which he alone can make and what establishes insurance as a separate economic activity. All the other activities of insurance can be and are performed by others. Banks and building societies invest funds. The police and voluntary bodies study the prevention of losses and so on. But in the skilled occupation of rating risks to produce an equitable contribution into the common fund, insurers stand alone. Rating: Insurers by their methods of rating encourage care. Premium is determined based on the bad features and good features of risk. The premium is high if the type of risk is bad and low if the type of risk is good. The basis of rating adopted provided an attractive financial inducement to the insured to improve risk. There are different discount methods for superior construction, less hazardous processes and for maintaining fire fighting appliances. No claim discount is also provided in certain cases where there is claim free experience. Reference has al