In order to really know what annuity standards really are you must first know what annuity in its self means. In general annuity Is a type of contract that is created with and insurance company. This contract is usually created when someone makes a payment, or even a few payments to the insurance company. This sort of payment is actually referred to as a premium. In return for making these payments the contract guarantees that you will also receive payments back from the insurance company if an accident were to happen. A few of the things that are possible to get insured, and are where annuity standards would come in to play, are things like homes, investment projects, and also cars. The two most important are obviously home insurance and also car insurance. That is because they are the two most common to have something bad happen to them. If there weren’t any annuity standards in place then there would be no balance between the insurer and the insurance company. Which makes the whole contract in the first place have no point at all. The standards can change every few years due to the amount of object people are getting insured and also due to the amount of people filing for insurance in general. Before insurance companies were created in the first place people that owned expensive things had no re assurance that if something happened they would be compensated for their lost. Although, in some cases you might not receive the full amount of money back they you think it was worse, it is still better to have something rather then receiving nothing at all. Some people choose to not got down that rode and stay away from insurance all together, which is fine because insurance is not a mandatory thing, only when it comes to cars.