Voluntary Insurance

It divides itself into three

(3) groups:
(a) Commercial insurance. — This is what persons usually
have in mind when they refer to the insurance business. In
contrast to cooperative plans, it receives its motivating force
from the profit idea. Two major classifications are parts of
commercial insurance:
1) Personal insurance.19 — This division is based on
the nature of the perils; that is, whether they are more
directly concerned with losses due to loss of earning
power of a person. Life insurance, including annuities,
and health and accident insurance are important parts of
the personal category of commercial insurance; and
2) Property insurance. — In this category is included
every form that has for its purpose the protection against
loss arising from the ownership or use of property. There
are two general classifications of property insurance. The
first indemnifies the insured in the event of loss growing
out of damages to, or destruction of his own property.
The second form pays damages for which the insured
is legally liable, the consequence of negligent acts that
result in injuries to other persons or damage to their
property. Included in the first classification are fire and
marine insurance, and in the second are casualty and
surety insurance.
(b) Cooperative insurance. — The term "cooperative" is
applied to associations usually operating under hospital,
medical, fraternal, employee, or trade-union auspices. The
associations are organized without regard to the profit

motive and represent, in fact, an effort to accomplish the ends

of social insurance by private enterprise. Here, the non-profit
cooperative objective of the insurance is emphasized; and
(c) Voluntary government insurance. — This category is
principally distinguished from social insurance in that there
is no element of compulsion. The various plans offered are
designed to benefit the entire community but are used only
by those persons who wish to use the available benefits. In
the category are to be found such plans as the insurance of
mortgage loans and insurance of growing crops, (see D.L.
Bickelhaupt, op. cit.f pp. 66-74.)