Insurance and risk management Essay Example | Topics and Well Written Essays - 500 words

Insurance and risk management - Essay Example Blue Cross and Blue Shield insurance companies differ in a number of ways, among them being the services that they offer. For instance, Blue Cross insurance specializes in the provision of medical and travel insurance. As a result of the rising cost of hospitalization and medical treatments, Blue Cross insurance, ensures that these uncertainties are covered to safeguarded American citizens. The Blue Cross travel insurance plan takes care of any medical emergency costs to ensure that people do not worry while travelling (Blue Cross Insurance Inc., 2012).. Blue Shield, on the other hand, specializes in the provision of insurance cover for buildings, equipments found both in and outside the building, coverage for company vehicle for staff, company stock as well as commercial liability. These forms of insurance cover are not provided by blue Cross insurance. Basically, Blue Cross Insurance is similar to other types of insurance with regard to the type of contracts. Firstly, just like any other form of insurance, it offers personal contracts (Blue Cross Insurance Inc., 2012). In this regard, it insures person or persons, instead of the property of these persons. This is evident from the travel insurance and its medical covers. Secondly, Blue Cross contracts are unilateral just like other types of insurance. This is evident as it makes an agreement with the insured who is expected to pay some premium, thus forcing it to perform its side of the bargain by indemnifying the insured in case of any lose suffered such those than happen in the course of a journey. Thirdly, it is evident that the contracts provided by Blue cross are conditional just like those of other insurance. This is because, before an individual enters into a contract with Blue Cross, first the insured is required to fulfill certain terms and conditions which the insured mus t perform in the event of a