Short-term insurance generally refers to insurance with an insurance period of less than one year, and long-term insurance refers to insurance with an insurance period of more than one year or one year or less, but with guaranteed renewal conditions.

The functions of insurance 1. Insurance must have risks.

The purpose of establishing an insurance system is to deal with the occurrence of specific dangerous accidents. If there is no risk, there is no insurance.

In order to apply the principle of large numbers, risks that are likely to benefit are not within the scope of insurability, so commercial insurance institutions generally do not insure such risks.

2. Insurance must provide financial compensation for losses caused by dangerous accidents.

The so-called economic compensation means that this kind of compensation is not the restoration of the destroyed original objects, nor is it compensation in kind, but monetary compensation.

Therefore, the loss caused by the accident must be economically calculable.

In personal insurance, the value of the person itself cannot be calculated, but human labor can create value. Death and disability of a person will lead to the loss of labor force, thereby reducing the income of the individual or his family and increasing expenses, so personal insurance

It is to use financial compensation or benefits to make up for this increased economic burden, but it does not guarantee that people can recover their lost labor force or life.

3. Insurance must have a mutual financial relationship.

The insurance system adopts the method of spreading the losses to many units to reduce the losses of disaster-stricken units.

Through insurance, policyholders jointly pay insurance premiums, establish an insurance compensation fund, and jointly obtain protection.

4. The insurance contribution must be reasonable.

The insurance compensation fund is shared by the people participating in the insurance. In order to make everyone's burden fair and reasonable, the sharing must be calculated scientifically. First, it is voluntary. The establishment of the legal relationship of commercial insurance is the autonomy of the policy holder and the insurer according to their will.

In principle, it is realized by voluntarily entering into insurance contracts on the basis of equality, mutual benefit and consensus, while social insurance is enforced by law; second, it is profitable, commercial insurance is a kind of commercial behavior, and those who operate commercial insurance business

No matter what organizational form a company adopts, it is for profit, while social insurance is for the purpose of protecting the basic living needs of social members; third, from the perspective of business scope and the principles of compensation insurance and payment of security funds, commercial insurance

It includes both property insurance and personal insurance. If you invest a corresponding amount of insurance premiums, you can get a corresponding amount of insurance compensation within the scope of the insurance value. This reflects the principle of investing more and more insurance, investing less and covering less, while social insurance

It is limited to personal insurance and does not provide differential protection based on the amount of insurance premium invested. It reflects the basic social security principle.

From an economic perspective, insurance is a loss sharing method.

An insurance fund is established with premiums paid by most units and individuals, so that the losses of a few members are shared by all insured persons.

Insurance is an economic system.

It is manifested in: (1) the commodity exchange relationship between the insurer and the insured, (2) the income redistribution relationship between the insurer and the insured.

Insurance belongs to the economic category, and what it reveals is the attribute of insurance, which is the essential thing of insurance.

In a legal sense, insurance is a contractual act, that is, by signing an insurance contract, the rights and obligations of both parties are clarified. The insured pays premiums to obtain compensation within the scope of the insurance contract, and the insurer has the right to receive premiums.

and the obligation to provide compensation.

① Insurance is a contractual legal relationship; ② The insurance contract is binding on both parties; ③ Whether the accident or event stipulated in the insurance contract occurs must be uncertain, that is, it is accidental; ④ The occurrence of the accident is a condition of the insurance contract

The other party, the insured, has no control; ⑤ The insurer shall be responsible for paying money or other similar compensation after the insured accident occurs; ⑥ The insurance shall be operated in the form of an insurance policy.

Insurance is an economic system and also a legal relationship. Insurance is the unity of economic relationships and legal relationships.