All The Facts About Insurance Company

What does an Insurance Company
do?

Insurance companies are universally categorized
into two groups: Life Insurance Companies and Non-life Insurance Companies. A
life insurance company sells annuities, pension products, and life insurance,
whereas a non-life insurance company will offer general policies for the
protection against losses realized to consumer products or services.

Insurance is an economic and legal tool that
operates as a form of risk management for consumers and companies. An insurance
product is typically used as a form of hedge against the risk of a contingent
or realized loss. The product is defined as an equitable transfer of the risk
or a loss from one entity to another in exchange for a tangible payment.

As a result,
the insurer or company who offers insurance will sell the hedge or risk
management tool to the insured individual. The entity that purchases the policy
will be protected from damages or a loss attached to the underlying product or
resource.

All insurance companies provide the risk
management tool to accrue a profit. Although insurance companies are in
business to realize a financial gain, the policies offered enable the consumer
protection against an elevated cost. All insurance companies utilize an
insurance rate, which is a factor used to determine the price charged for a
certain amount of coverage.

Principles

An insurance company can provide a policy for
seemingly any consumer product or valuable service. Houses, property, credit,
automobiles, boats, medical care, a person’s life, and various consumer
products are typically attached with some form of insurance policy.

An insurance company provides these policies to
a consumer base by pooling funds from multiple insured entities to pay for the
losses that may incur. As a result of this relationship, the insured entities
are protected from risk for a fee charged by the insurance company. That being
said, all insurance companies will evaluate particular scenarios and
individuals to ascertain which goods or entities are in fact insurable. An
insurance company will adjust the rates attached depending on the likelihood
that the individual or the good attached will incur damages and costs to the
insurance company.

All private insurance companies incorporate a
model which prices seven potential types of risks: accidental losses, large
losses, calculable losses, a definite loss, large number of similar exposure
units, an affordable premium, and a limited risk of catastrophically large
losses.

Legal Issues Attached to Insurance Companies

When an insurance company insures an entity,
there are basic legal requirements attached to the policy and the transaction
of the product. The following list contains examples of basic legality issues
that affect an insurance company’s business model:

Indemnity: The insurance company will compensate
the insured entity in the case of certain losses only up to the insured
interest.

Utmost Good Faith: The insurance company and
the insured entity are tied together through the agreement by a good faith
bond. The contract must be honored with honesty and fairness, and all material
facts must be disclosed in the agreement. A failure to institute the agreed
upon contractual obligation will result in a lawsuit and a termination of the
policy.

Insurable Interest: The insured entity must
directly suffer from the loss to realize coverage. The policy holder must
possess a “stake” in the damages suffered or the monetary loss of their insured
good or service.

Pharmaceutical Company

What is a Pharmaceutical Company?

A pharmaceutical company is a business aligned with the pharmaceutical industry. Pharmaceutical companies develop, produce, and market various drugs and medicines to be used as forms of medications for various ailments or disorders.

Pharmaceutical companies deal with a wide array of drugs, in both generic and brand forms. As a result of their product and the side effects and potential dangers associated with medicinal drugs, all domestic pharmaceutical companies are stringently regulated by the United States Government.

Research and Development

To create medicine and various forms of drugs, a pharmaceutical company will embark on a process known as “drug discovery.” This process denotes the tangible creation and design of various drugs which are used to treat a wide array of ailments or disorders. This process is held separately from “drug development”, which refers to the activities undertaken after the specific chemical or compound is identified as a potential form of medication. Both processes incorporate a rich scientific understanding and are essential to the formation of all drugs and medicines.

Similar to other markets, the pharmaceutical industry incorporates a profit-based business model into the production of various drugs. Although a corporation will spend money to innovate and research potential elixirs to various ailments, the end goal of a pharmaceutical company is two pronged: realize a profit and produce a drug that harnesses benefits and penetrates the consumer market.

Controversy in the Pharmaceutical Industry

Before a drug can be produced it must be tested to eliminate any chances of dangerous or life-threatening side effects. As of late, there have been increasing accusations and findings that a clinical testing (administered and funded by the underlying pharmaceutical company) are more likely to deliver positive results for the preferred product.

In the United States, all pharmaceutical products must be tested and subsequently approved by the Food and Drug Administration of the United States Government before the product can be distributed to the consumer base. The drugs in question must be evaluated and regarded as both safe and effective before the product can be widely distributed and sold.

The process undertaken by the Food and Drug Administration involves the submission of an Investigational new drug filing which incorporates sufficient pre-clinical data to support proceeding with the involvement of human trials. If a pharmaceutical company fails to satisfy the testing requirements instituted by their particular government and the product yields significant risks to the consumer base, a recall or a termination of the drug will be administered.

Legal Issues

When a Pharmaceutical Company releases a drug without a proper understanding of the medication or without conducting thorough clinical trials of the product, civil lawsuits can arise given the occurrence of drastic side-effects.

If you have taken a commercial drug and were the victim of heinous side effects or a debilitating reaction, you are entitled to file a tort claim or malpractice case against the pharmaceutical company. Before you embark on such a trial, you must incorporate a legal professional who is well-versed in drug-related injuries. The goal of such trials or claims is to reach a financial settlement which will award the victim of the case an opportunity to recoup the losses incurred from physical and emotional damage.

Construction Company Overview

What is a Construction Company?

Construction is directly tied into the fields of civil engineering and architecture. It is a process that consists of building an infrastructure. As a result of this role or procedural description, a construction company is responsible for building structures, in both the commercial and private sectors.

A construction company pools together a variety of resources to assemble all forms of structures in a streamlined and thorough process. A construction company is not a single entity and does not carry out one role, for they are large-scale multitasking agencies that incorporate a plethora of human capital and machines.

To assemble a building, home, or structure, a construction company must operate in the most efficient manner possible. Typically, a construction site (the actual location where the infrastructure is assembled) is managed by a project manager and supervised by a construction engineer, a construction manager, and project architect. These individuals represent the hierarchy of the construction company. The supervisors and project managers delve out orders to the workers who physically assemble the foundation and the

structure itself.

In addition to the hierarchy, the assembling of a building must be effectively planned. For the successful execution of any construction site, those involved with the building must incorporate a cost/benefit analysis which deals with numerous factors that stretch beyond the tangible aspects of construction. For instance, the environmental implications of the job, the successful scheduling of the construction project, the budget, and most importantly the safety measures of the project should be exhaustively planned.

Legal Considerations

The construction of a building or a private home must fit into the legal framework governing the particular property. The construction company must work in accordance with the laws which govern a particular piece of land. These laws include the governmental regulations for the use of the property and all obligations that are created in the tangible process of construction.

All construction projects must adhere to the specific building code and zoning requirements established by the particular local government which resides over the property in question. Constructing a project that fails to follow these codes will not benefit the owner and will reveal a multitude of problems in the future.

The laws which govern the construction process are aimed at preventing cataclysmic events in the future. Explosions, bridge collapses, faulty structures, and wrongful deaths are examples of certain calamities that can occur if a construction company fails to adhere to the governing laws of their project. If such unfortunate moments take place, the construction company will be liable for the damages and injuries that resulted from their negligence.

All construction projects contain a series of complex net contracts and an assortment of legal obligations, each of which must be considered. Construction projects are unique because they incorporate multiple relationships between businesses, various private entities, and government departments. These agents must work in conjunction with each other to deliver the assembly of a structure in a specifically allotted time. A failure to assemble the structure on time will result in a delay and a subsequent forfeiture of monies.

Holding Company Explained

What is a Holding Company?

A holding company is an institution which holds outstanding stock in another corporation. In general, a holding company refers to a company that does not produce goods or services, but simply holds an interest in another company’s work. As a result, the only purpose or function of a holding company is to own shares of another company’s outstanding stock or equity.

Because of their function, holding companies offer a reduction of risk for the owners of companies whose stock is being held. The company whose stock is being held is considered stable and a valuable investment, which triggers more buyers into the market. In turn, the holding company benefits from partial ownership and control of a multitude of companies. This allows a holding company to spread risk over a number of industries and market sectors.

Berkshire Hathaway is the largest holding company in the United States. Operated and owned by Warren Buffet, Berkshire Hathaway owns numerous insurance companies, retailers, manufacturing businesses, and other companies.

Public vs. Personal Holding Companies

A personal holding company is defined under the United States Internal Revenue Code. This definition holds two primary classification systems. Both requirements must be met for the particular corporation to be considered a personal holding company.

The requirements are as follows: The company must pass the Personal Holding Company Income Test which requires the entity to possess at least 60% of the corporation’s adjusted ordinary gross income for the tax year based on dividends, rent, royalties, and interest. In addition, the corporation must meet the Stock Ownership Requirement, which states that at any time during the last half of the tax year, more than 50% in value of the corporation’s outstanding stock is directly or indirectly owned by five or fewer individuals.

The other classification for a holding company is a public utility holding company. These forms of holding companies own shares of subsidiaries which distribute electricity or gas to retail consumers. These companies are regulated by the Public Utility Holding Company Act of 1935, which is a law that regulates electric utilities by either limiting their business operations to a single state or through the enforcement of divestitures so that each company operates as a single integrated system serving a limited geographical region.

Regulation of Holding Companies

Holding companies are commonly under attack because they utilize their vast resources to dominate particular markets. In the late twentieth century, Federal regulations arose to scrutinize monopolistic acquisitions or the development of anti-competitive business models. As a result, the United States Federal Government has the ability to block potential mergers and the acquisition of majority stock purchases by holding companies. The laws that regulate holding companies are meant to uphold the competitive model under which the United States operates.

Understanding Gas Company Roles

What does a Gas Company do?

Gas companies produce, manufacturer and distribute gasoline-based products throughout the world. Gasoline, also known as petrol, is a petroleum-derived mixture which is used for fuel in combustion-based engines.

There are two forms of gas companies in the United States: private gas companies and public gas companies. Although this categorization is somewhat broad, it can be further defined by the roles in which gas companies deliver. A gas company, in the public definition, is a utility that provides gas to residents and various entities in a particular location. Public utilities are funded in part by a government agency, and the products delivered are considered necessities to property owners throughout the United States.

In contrast, a private gas company delivers petroleum-based products to motor-vehicle operators and various consumers in the United States. These companies are purely profit-based and will price their products in relation to the supply and demand of oil.

Legal Issues Associated with Gas Companies

Although the services offered by gas companies are considered necessities, the underlying product contains viable threats to both human health and the environment. Gasoline contains hydrocarbons which are carcinogenic agents that, on a large scale, present an enormous threat to public health and the environment. In addition, the chemical structure of gasoline is highly flammable. When gasoline is heated or interacts with fire it is highly explosive.

Gasoline is also a source of pollutant gases. Gasoline produces carbon dioxide, nitrogen oxides, and carbon monoxide. When these gases are emitted through the use of an engine they adversely affect our atmosphere’s protective layers.

These characteristics present great challenges in regards to the safe use and delivery of petroleum-based products. The most common threats associated with gasoline companies are delivery spills. When gasoline is spilled (for example, when a delivery truck gets in an accident), the leaked gasoline is not only flammable but emits corrosive pollutants into the atmosphere. These pollutants also pose a threat to human beings. When gasoline is chronically inhaled it can damage one’s health.

The effects of a gas spill are typically catastrophic. The pollutants combined with the threats of a conflagration can precipitate deaths and an environmental disaster. When these unfortunate situations arise, the gas companies are held liable and are typically punished by various forms of government and sued by the individuals or entities of the particular jurisdiction in which the spill or leak occurred.

If mishandled or delivered in violation of safety protocol, the negative externalities attached could potentially cripple a community. As a result of the product’s inherent dangers and the stress it places on the environment, gases and our reliance on oil is a widely debated political issue.

Why Does Business Law Exist?

In order to establish a semblance of control in society, laws and regulations are necessary. The same will prove true in the world of business.

Business laws exist in order to have control over transactions that occur, regardless of the trade or type of business. Generally speaking, business law is meant to provide for general control and maintenance of commercial transactions. However, it can also be said that business law exists as a way to protect the consumer from manufacturers and companies.

Business laws will take into consideration other aspects of law in general, such as certain ethical and moral practices and the need for certain administrative concerns. Without business laws in place, companies and manufacturers could potentially sell goods and items that are not functioning or do not do what they are represented to do. Furthermore, without business laws there would be no legal recourse to reprimand such immoral and wrongful actions. Business laws provide for regulations that must be followed to help ensure truthful commercial transactions.

Quick Facts About Labor Laws

Employment laws are determined by state law. Therefore, not all companies follow the same labor laws. Depending on in which state the company is located will determine the type of labor laws that the company will have to abide by.

Company employment laws will vary also due to the type of business that it is. For example, all restaurants in a particular state will have to abide by the same laws. However, a construction company may not necessarily have to abide by these stated labor laws.

Generally speaking, there are some labor laws that all companies must follow, such as minimum wage, age, hours of work, working conditions, and pay. All companies must also abide by an equal opportunity employment law, which states that they must hire people based on their qualifications, and they cannot discriminate against people based on their age, gender, race, or religion.

The Serious Ramifications of a Corrupt Business

If a person or business is caught partaking in corrupt business practices, there will be certain ramifications for such conduct. Illegal business practice is seen as a Federal crime, and therefore, all states have the same general laws by which they must abide.

In terms of punishment, different corrupt business actions will warrant different types of punishment. Types of corrupt business practices include: business fraud, extortion, and money laundering. The degree of the crime and punishment.

Regardless of the action, the individual in charge will be tried in a Federal court. The typical results of corrupt business practices include: jail time, fines, and repayment of any damages that have been caused. Generally speaking, the business will be audited and have to present documentation of all business actions for a specific time period.

Filling Out Better Business Bureau Forms

For those wishing to file a Better Business Bureau complaint against an employer, specific information is required. For example, if the offense is related to pay, the employee must have documentation about any pay received and any missing pay. If the complaint requires a Better Business Bureau form that relates to the treatment of employees, such as harassment or threats, different information may be required.

Better Business Bureau forms may also be used for complaints against a business that took part in illegal or improper activity. The individual should obtain the license number, address and phone number of the company. It is also advised that the names of anyone that handled the work be listed on the Better Business Bureau form.

Employee Rights Over an Employee Email Address

The laws associated with employee e-mail and Internet privacy should be acknowledged of all employed individuals. Understanding the laws associated with employee e-mail and Internet privacy will avoid unfortunate circumstances, such as job termination, from occurring.

When employed by a private sector employer or corporation, you must understand that all e-mails sent are considered property of the company. As a result, the underlying business or corporation has the ability to observe all employee e-mail. Any inside information or misconduct will be treated as public domain and persecuted as a violation against company policy.

In addition, Internet privacy is essentially non-existent for employers. Your company has the rights and ability to observe all Internet searches and visited sites. These rights are awarded to employers to prevent misconduct that would damage a company’s business model. Employee e-mail and search histories are also observable to ensure that each worker is reaching or near maximum efficiency.