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From Wikipedia, the free encyclopedia
Car or Automobile
Karl Benz's "Velo" model (1894) - entered into the first automobile race Automobile Portal
An automobile is a wheeled passenger vehicle that carries its own motor. Different types of automobiles include cars, buses, trucks, and vans. Some include motorcycles in the category, but cars are the most typical automobiles. The term "automobile" is derived from Greek "autos" (self) and Latin "mov�re" (move), referring to the fact that it "moves by itself." Earlier terms for automobile include motorwagen, horseless carriage, and motor car. Although the term "car" is presumed to be derived through the shortening of the term "carriage", the word has its origin before 1300 A.D. in English as, "carr"�derived from similar words in French and much earlier Latin words�for a vehicle that moves, especially on wheels, that was applied to chariots, small carts, and later�to carriages that carried more people and larger loads. As of 2005 there were 600 million cars worldwide (93 cars per 1,000 persons)
The automobile was hailed as an environmental improvement over horses when it was first introduced in the 1880s. Before its introduction, in New York City alone, over 10,000 tons of manure had to be removed from the streets daily. The manure was used as natural fertilizer for crops and to build top soil. Another benefit often overlooked is that horses instinctively avoid running into one another or obstacles in their path, so there were few accidents. Ironically, in 2006, the automobile now is recognized as a primary source of world-wide air pollution and a cause of substantial noise and health effects that far exceeds the adverse effects of using horse-drawn vehicles.
1 History
1.1 Internal combustion engine powered vehicles
1.2 Production of automobiles begins
1.3 Innovation
1.4 Model changeover and design change
2 Alternative fuels and batteries
3 Safety
4 Current Production
5 Economics
6 Future of the car
7 See
8 See also
9 External links
History
Main article: History of the automobile
The automobile powered by the Otto gasoline engine was invented in Germany by Karl Benz in 1885. Benz was granted a patent dated 29 January 1886 in Mannheim for that automobile. Even though Benz is credited with the invention of the modern automobile, several other German engineers worked on building automobiles at the same time. In 1886, Gottlieb Daimler and Wilhelm Maybach in Stuttgart patented the first motor bike, and in 1889 they built a converted horse-drawn stagecoach. In 1870, German-Austrian inventor Siegfried Marcus assembled a motorized handcart, though Marcus's vehicle didn't go beyond the experimental stage.
Automobile history eras
1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s
Veteran Brass or Edwardian Vintage Pre-War Post-War Modern
Antique
Classic

Internal combustion engine powered vehicles
Animation of a 4-stroke internal combustion engineIn 1806 Fran�ois Isaac de Rivaz, a Swiss, designed the first internal combustion engine (sometimes abbreviated "ICE" today). He subsequently used it to develop the world's first vehicle to run on such an engine that used a mixture of hydrogen and oxygen to generate energy. The design was not very successful, as was the case with the British inventor, Samuel Brown, and the American inventor, Samuel Morey, who produced vehicles powered by clumsy internal combustion engines about 1826.
Etienne Lenoir produced the first successful stationary internal combustion engine in 1860, and within a few years, about four hundred were in operation in Paris. About 1863, Lenoir installed his engine in a vehicle. It seems to have been powered by city lighting-gas in bottles, and was said by Lenoir to have "travelled more slowly than a man could walk, with breakdowns being frequent." Lenoir, in his patent of 1860, included the provision of a carburettor, so liquid fuel could be substituted for gas, particularly for mobile purposes in vehicles. Lenoir is said to have tested liquid fuel, such as alcohol, in his stationary engines; but it doesn't appear that he used them in his own vehicle. If he did, he most certainly didn't use gasoline, as this was not well-known and was considered a waste product.
The next innovation occurred in the late 1860s, with Siegfried Marcus, a German working in Vienna, Austria. He developed the idea of using gasoline as a fuel in a two-stroke internal combustion engine. In 1870, using a simple handcart, he built a crude vehicle with no seats, steering, or brakes, but it was remarkable for one reason: it was the world's first internal-combustion-engine-powered vehicle fueled by gasoline. It was tested in Vienna in September of 1870 and put aside. In 1888 or 1889, he built a second automobile, this one with seats, brakes, and steering, and included a four-stroke engine of his own design. That design may have been tested in 1890. Although he held patents for many inventions, he never applied for patents for either design in this category.
The four-stroke engine already had been documented and a patent was applied for in 1862 by the Frenchman Beau de Rochas in a long-winded and rambling pamphlet. He printed about three hundred copies of his pamphlet and they were distributed in Paris, but nothing came of this, with the patent application expiring soon afterward�and the pamphlet disappearing into total obscurity. In fact, its existence mostly was unknown and Beau de Rochas never built a single engine.
Most historians agree that Nikolaus Otto of Germany built the world's first four-stroke engine although his patent was voided. He knew nothing of Beau de Rochas's patent or idea, and came upon the idea entirely on his own. In fact, he began thinking about the concept in 1861, but abandoned the concept until the mid-1870s.
There is some evidence, although not conclusive, that Christian Reithmann, an Austrian living in Germany, had built a four-stroke engine entirely on his own by 1873. Reithmann had been experimenting with internal combustion engines as early as 1852.
In 1883, Edouard Delamare-Deboutteville and Leon Malandin of France installed an internal combustion engine powered by a tank of city gas on a tricycle. As they tested the vehicle, the tank hose came loose, resulting in an explosion. In 1884, Delamare-Deboutteville and Malandin built and patented a second vehicle. This one consisted of two four-stroke, liquid-fueled engines mounted on an old four-wheeled horse cart. The patent, and presumably the vehicle, contained many innovations, some of which wouldn't be used for decades. However, during the vehicle's first test, the frame broke apart, the vehicle literally "shaking itself to pieces," in Malandin's own words. No more vehicles were built by the two men. Their venture went completely unnoticed and their patent unexploited. Knowledge of the vehicles and their experiments was obscured until years later.
Supposedly in the late 1870s, an Italian named Murnigotti patented the idea of installing an internal combustion engine on a vehicle, although there is no evidence that one was built. In 1884, Enrico Bernardi, another Italian, installed an internal combustion engine on his son's tricycle. Although merely a toy, it is said to have operated somewhat successfully in one source, but another says the engine's power was too feeble to make the vehicle move.

Production of automobiles begins
If all of the above experiments hadn't taken place, however, the development of the automobile wouldn't have been retarded by so much as a moment, since they were unknown experiments that never advanced beyond the testing stage. The internal-combustion-engine automobile really can be said to have begun in Germany with Karl Benz in 1885, and Gottlieb Daimler in 1889, for their vehicles were successful, they went into series-production, and they inspired others.
Karl Benz
Replica of the Benz Patent Motorwagen built in 1885Karl Benz began to work on new engine patents in 1878. First, he concentrated all his efforts on creating a reliable two-stroke gas engine, based on Nikolaus Otto's design of the four-stroke engine. A patent on the design by Otto had been declared void. Karl Benz finished his engine on New Year's Eve and was granted a patent for it in 1879. Karl Benz built his first three-wheeled automobile in 1885 and it was granted a patent in Mannheim, dated January of 1886. This was�the first automobile designed and built as such�rather than a converted carriage, boat, or cart. Among other items Karl Benz invented for the automobile are the carburetor, the speed regulation system known also as an accelerator, ignition using sparks from a battery, the spark plug, the clutch, the gear shift, and the water radiator. He built improved versions in 1886 and 1887 and�went into production in 1888�the world's first automobile put into production. His wife, Bertha, made significant suggestions for innovation (see below) that he included in that model. Approximately twenty-five were built before 1893, when his first four-wheeler was introduced. They were powered with four-stroke engines of his own design. Emile Roger of France, already producing Benz engines under license, now added the Benz automobile to his line of products. Because France was more open to the early automobiles, in general, more were built and sold in France through Roger, than Benz sold initially from his own factory in Germany.
Gottlieb Daimler, in 1886, fitted a horse carriage with his four-stroke engine in Stuttgart. In 1889, he built two vehicles from scratch as automobiles, with several innovations. From 1890 to 1895 about thirty vehicles were built by Daimler and his innovative assistant, Wilhelm Maybach, either at the Daimler works or in the Hotel Hermann, where they set up shop after having a falling out with their backers. These two Germans, Benz and Daimler, seem to have been unaware of the early work of each other and worked independently. Daimler died in 1900. During the First World War, Benz suggested a co-operative effort between the companies the two founded, but it was not until 1926 that the companies united under the name of Daimler-Benz with a commitment to remain together under that name until the year 2000.
In 1890, Emile Levassor and Armand Peugeot of France began series-producing vehicles with Daimler engines, and so laid the foundation of the motor industry in France. They were inspired by Daimler's Stahlradwagen of 1889, which was exhibited in Paris in 1889.
The first American automobile with gasoline-powered internal combustion engines supposedly was designed in 1877 by George Baldwin Selden of Rochester, New York, who applied for a patent on an automobile in 1879. Selden didn't build a single automobile until 1905, when he was forced to do so, due to a lawsuit threatening the legality of his patent because the subject had never been built. Construction is required to demonstrate the feasibility of the design and validate the patent, otherwise the patent may be voided. After building the 1877 design in 1905, Selden received his patent and later sued the Ford Motor Company for infringing upon his patent. Henry Ford was notorious for opposing the American patent system and Selden's case against Ford went all the way to the Supreme Court, which ruled that Ford, and anyone else, was free to build automobiles without paying royalties to Selden, since automobile technology had improved so significantly since the design of Selden's patent, that no one was building according to his early designs.
Meanwhile, notable advances in steam power evolved in Birmingham, England by the Lunar Society. It was here that the term horsepower was first used. It also was in Birmingham that the first British four-wheel petrol-driven automobiles were built in 1895 by Frederick William Lanchester. Lanchester also patented the disc brake in that city. Electric vehicles were produced by a small number of manufacturers.

Innovation
Ford Model T, 1927The first automobile patent in the United States was granted to Oliver Evans in 1789 for his "Amphibious Digger". It was a harbor dredge scow designed to be powered by a steam engine and he built wheels to attach to the bow. In 1804 Evans demonstrated his first successful self-propelled vehicle, which not only was the first automobile in the US but was also the first amphibious vehicle, as his steam-powered vehicle was able to travel on wheels on land as he demonstrated once, and via a paddle wheel in the water. It was not successful and eventually was sold as spare parts.
The Benz Motorwagen, built in 1885, was patented on 29 January 1886 by Karl Benz as the first automobile powered by an internal combustion engine. In 1888, a major breakthrough came with the historic drive of Bertha Benz. She drove an automobile that her husband had built for a distance of more than 106 km (i.e. - approximately 65 miles). This event demonstrated the practical usefulness of the automobile and gained wide publicity, which was the promotion she thought was needed to advance the invention. The Benz vehicle was the first automobile put into production and sold commercially. Bertha Benz's historic drive is celebrated as an annual holiday in Germany with rallies of antique automobiles.
In 1892 Rudolf Diesel gets a patent for a �New Rational Combustion Engine� by modifying the Carnot Process. And in 1897 he builds the first Diesel Engine.
On 5 November 1895, George B. Selden was granted a United States patent for a two-stroke automobile engine (U.S. Patent 549160). This patent did more to hinder than encourage development of autos in the USA. Steam, electric, and gasoline powered autos competed for decades, with gasoline internal combustion engines achieving dominance in the 1910s.
Ransom E. Olds, the creator of the first automobile assembly lineThe large-scale, production-line manufacturing of affordable automobiles was debuted by Ransom Eli Olds at his Oldsmobile factory in 1902. This assembly line concept was then greatly expanded by Henry Ford in the 1910s. Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910-1911), independent suspension, and four-wheel brakes.
Felix Wankel invented the Wankel engine in 1954, which had a very unconventional structure that would reduce the wear the engine effected upon itself as it worked.

Model changeover and design change
Cars are not merely continually perfected mechanical contrivances; since the 1920s nearly all have been mass-produced to meet a market, so marketing plans and manufacture to meet them have often dominated automobile design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one firm, so that buyers could "move up" as their fortunes improved. The makes shared parts with one another so that the larger production volume resulted in lower costs for each price range. For example, in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; the LaSalle of the 1930s, sold by Cadillac, used the cheaper mechanical parts made by the Oldsmobile division.

Alternative fuels and batteries
Main article: Alternative fuel cars
With heavy taxes on fuel, particularly in Europe and tightening environmental laws, particularly in California, and the possibility of further restrictions on greenhouse gas emissions, work on alternative power systems for vehicles continues.
Diesel-powered cars can run with little or no modification on 100% pure biodiesel, a fuel that can be made from vegetable oils but require modifications if you drive in cold weather countries. The main plus of Diesel combustion engines is its 50% fuel burn advantage over 23% in the best gasoline engines. This makes Diesel engines capable of achieving an average of 6 L/100km fuel efficiency. Many cars that currently use gasoline can run on ethanol, a fuel made from plant sugars. Most cars that are designed to run on gasoline are capable of running with up to 15% ethanol mixed in. With a small amount of redesign, gasoline-powered vehicles can run on ethanol concentrations as high as 85%. All petrol fuelled cars can run on LPG. There has been some concern that the ethanol-gasoline mixtures prematurely wear down seals and gaskets. Theoretically, the lower energy content of alcohol should lead to considerably reduced efficiency and range when compared with gasoline. However, EPA testing has actually shown only a 20-30% reduction in range. Therefore, if your vehicle is capable of doing 750 kilometers on a 50 liter tank (15 kilometers per liter), its range would be reduced to approximately 600 kilometers (12 kilometers per liter). Of course, certain measures are available to increase this efficiency, such as different camshaft configurations, altering the timing/spark output of the ignition, increasing compression, or simply using a larger fuel tank.
In the United States, alcohol fuel was produced in corn-alcohol stills until Prohibition criminalized the production of alcohol in 1919. Interest in alcohol as an automotive fuel lapsed until the oil price shocks of the 1970s. Reacting to the high price of oil and its growing dependence on imports, in 1975 Brazil launched a huge government-subsidized effort to manufacture ethanol fuel (from its sugar cane crop) and ethanol-powered automobiles. These ethanol-only vehicles were very popular in the 1980's, but became economically impractical when oil prices fell - and sugar prices rose - late in that decade. In recent years Brazil has encouraged the development of flex-fuel automobiles, where the owner can use any mixture of ethanol and gasoline based on their individual cost and performance goals. In 2005, 70% of the cars sold in Brazil were flex-fuel.
Attempts at building viable battery-powered electric vehicles continued throughout the 1990s (notably General Motors with the EV1), but cost, speed and inadequate driving range made them uneconomical. Battery powered cars have primarily used lead-acid batteries and NiMH batteries. Lead-acid batteries' recharge capacity is considerably reduced if they're discharged beyond 75% on a regular basis, making them a less-than-ideal solution. NiMH batteries are a better choice, but are considerably more expensive than lead-acid.
Toyota Prius, a hybrid vehicle. Museum of Toyota of Aichi Prefecture, JapanCurrent research and development is centered on "hybrid" vehicles that use both electric power and internal combustion. The first hybrid vehicle available for sale in the USA was the Honda Insight. As of 2006, the car is still in production and achieves around 3.92 L/100km.
Other R&D efforts in alternative forms of power focus on developing fuel cells, alternative forms of combustion such as GDI and HCCI, and even the stored energy of compressed air (see water Engine).

Safety
Automobile accidents are almost as old as automobiles themselves. Joseph Cugnot crashed his steam-powered "Fardier" against a wall in 1771. One of the earliest recorded automobile fatalities was Mary Ward, on 1869-08-31 in Parsonstown, Ireland, an early victim in the United States was Henry Bliss on 1899-09-13 in New York City, NY.
Cars have two basic safety problems: They have human drivers who make mistakes, and the wheels lose traction near a half gravity of deceleration. Automated control has been seriously proposed and successfully prototyped. Shoulder-belted passengers could tolerate a 32G emergency stop (reducing the safe intervehicle gap 64-fold) if high-speed roads incorporated a steel rail for emergency braking. Both safety modifications of the roadway are thought to be too expensive by most funding authorities, although these modifications could dramatically increase the number of vehicles that could safely use a high-speed highway.
Early safety research focused on increasing the reliability of brakes and reducing the flammability of fuel systems. For example, modern engine compartments are open at the bottom so that fuel vapors, which are heavier than air, vent to the open air. Brakes are hydraulic so that failures are slow leaks, rather than abrupt cable breaks. Systematic research on crash safety started in 1958 at Ford Motor Company. Since then, most research has focused on absorbing external crash energy with crushable panels and reducing the motion of human bodies in the passenger compartment.
There are standard tests for safety in new automobiles, like the EuroNCAP and the US NCAP tests. There are also tests run by organizations such as IIHS and backed by the insurance industry.
Despite technological advances, there is still significant loss of life from car accidents: About 40,000 people die every year in the U.S., with similar figures in Europe. This figure increases annually in step with rising population and increasing travel if no measures are taken, but the rate per capita and per mile travelled decreases steadily. The death toll is expected to nearly double worldwide by 2020. A much higher number of accidents result in injury or permanent disability. The highest accident figures are reported in China and India. The European Union has a rigid program to cut the death toll in the EU in half by 2010 and member states have started implementing measures.

Current Production
A 1993 Ford Escort station wagon, a modern automobile.In 2005 63 million cars and light trucks were produced worldwide. The world's biggest car producer (including light trucks) is the European Union with 29% of the world's production. In non-EU Eastern Europe another 4% are produced. The second largest manufacturer is NAFTA with 25.8%, followed by Japan with 16.7%, China with 8.1%, MERCOSUR with 3.9%, India with 2.4% and the rest of the world with 10.1%. (vda-link)
Large free trade areas like EU, NAFTA and MERCOSUR attract manufacturers worldwide to produce their products within them and without currency risks or customs, additionally to being close to customers. Thus the production figures do not show the technological ability or business skill of the areas. In fact much if not most of the Third World car production is used western technology and car models (and sometimes even complete obsolete western factories shipped to the country), which is reflected in the patent statistic as well as the locations of the r&d centers.
The automobile industry is dominated by relatively few large corporations (not to be confused with the much more numerous brands), the biggest of which (by numbers of produced cars) are currently General Motors, Toyota and Ford Motor Company. It is expected, that Toyota will reach the No.1 position in 2006. The most profitable per-unit car-maker of recent years has been Porsche due to its premium price tag.
The automotive industry at large still suffers from high under-utilization of its manufacturing potential.
A typical family car costs about 25� in raw materials in production. Higher line cars tend to cost 100� up.

Economics
Compared to other popular modes of passenger transportation, especially buses, the automobile is relatively uneconomic. There are a number of reasons for this:
The typical private car spends most of its lifetime idling and depreciation is a significant proportion of the total cost.
Compared to bulk-carrying vehicles such as airplanes, buses and trains, individual vehicles have worse economies of scale.
Capacity utilisation is low. The average occupancy of automobiles is below 1.5 passengers in most parts of the world. Measures such as HOV lanes try to address this issue.
According to the RAC the average cost of running a new car in the UK is GBP 5,000 (US$ 9,000) per year, or roughly 1/3 of the average net wage, a situation reflected in most other Western nations. Nevertheless demand for automobiles remains high and inelasic, suggesting that its advantages, such as on-demand and door-to-door travel, are highly prized and not easily susbtituted by cheaper alternative modes of transport.
The costs of running a car can be broken down as follows (in approximate order of cost):
Depreciation
Fuel (including fuel tax)
Repairs
Maintainance
Insurance
Parking
Tyre replacement
Vehicle tax
Financing
Roadworthiness Tests
Registration
Accessories
Despite rising oil prices the real cost of car travel has dropped steadily over the past 5 decades, in part due to cheaper manufacturing technologies, and in part due to engines becoming more fuel-efficient.
As opposed to public transport, the automobile is characterised by high fixed costs and low variable costs, making it most attractive for frequent travellers such as commuters, and least attractive for infrequent and/or flexible travellers, such as people who use their car for weekend trips only. This is the main reason why public transport companies try to increase competitiveness in the commuter market by raising fixed costs/ reducing variable costs to the consumer in the form of season tickets. Carsharing significantly lowers fixed costs, hence it tends to be more popular with light users than commuters.
Since automobiles demand a high land use, they become increasingly uneconomic with higher population densities. This can either manifest itself in higher costs of driving in densely populated areas (Parking fees and road pricing), or in the absence of a price mechanism, in an shortage in the form of traffic jams. Public transport, by comparison, becomes increasingly uneconomic with lower population densities. Hence cars tend to dominate in rural and suburban environments, while only fulfilling a secondary role in city center transport.

Future of the car
In order to limit deaths, there has been a push for self-driving automobiles. There have been many notable efforts funded by the NHTSA, including the many efforts by the NavLab group at Carnegie Mellon University. Recent efforts include the highly publicized DARPA Grand Challenge race.
Toyota FCHV (Fuel Cell Hybrid Vehicle). A fuel cell hybrid car which runs from the hydrogen which Toyota Motor developed,. 2005A current invention is ESP by Bosch that is claimed to reduce deaths by about 30% and is recommended by many lawmakers and carmakers to be a standard feature in all cars sold in the EU. ESP recognizes dangerous situations and corrects the drivers input for a short moment to stabilize the car.
The biggest threat to automobiles is the declining supply of oil, which does not completely stop car usage but makes it significantly more expensive. In the beginning of 2006, 1 liter of gas costs approximately $1.60 USD in Germany and other European countries, and one US gallon of gas costs nearly $3.00 USD. If no cheap solution can be found in the relatively near future individual mobility might suffer a major setback. Nevertheless, individual mobility is highly prized in modern societies so the demand for automobiles is inelastic. Alternative individual modes of transport, such as Personal rapid transit, could make the automobile obsolete if they prove to be cheaper and more energy efficient.
Hydrogen cars, driven either by a combination of fuel cells and an electric motor, or alternatively, a conventional combustion engine, are thought to replace fossil fuel powered cars in a few decades. The biggest obstacle for a mass market of hydrogen cars is the cost of hydrogen production by electrolysis, which is inefficient and requires a comparatively expensive source of electrical energy. Hydrogen has a much higher energy density than gasoline or diesel. It is thought to become cheaper with mass production, but because its production is overall energy inefficient and requires other sources of energy, including fossil, it is unlikely to be a cheaper fuel than gasoline or diesel today. Also, its combustion produces only steam and virtually no local pollutants such as NOx, SOx, benzene and soot. BMW's engineering team promises a high horsepower hydrogen fuel engine in it's 7-series sedan before the next generation of the car makes its debut.
Lexus LF-A concept car at the 2006 Greater Los Angeles Auto ShowThe electric car in general appears to be a way forward in principle; electric motors are far more efficient than internal combustion engines and have a much greater power to weight ratio. They also operate efficiently across the full speed range of the vehicle and develop a lot of torque at zero speed, so are ideal for cars. A complex drivetrain and transmission would not be needed. However, despite this the electric car is held back by battery technology - so far a cell with comparable energy density to a tank of liquid fuel is a long way off, and there is no infrastructure in place to support it. A more practical approach may be to use a smaller internal combustion engine to drive a generator- this approach can be much more efficient since the IC engine can be run at a single speed, use cheaper fuel such as diesel, and drop the heavy, power wasting drivetrain. Such an approach has worked very well for railway locomotives, but so far has not been scaled down for car use.
Recently the automobile industry has determined that the biggest potential growth market (in terms of both revenue and profit), is software. Cars are now equipped with a stunning array of software; from voice recognition and vehicle navigation systems, vehicle tracking system like ESITrack to in-vehicle distributed entertainment systems (DVD/Games), to telematics systems such as GMs Onstar not to mention the control subsystems. Software now accounts for 35% of a cars value, and this percentage is only going to get larger. The theory behind this is that the mechanical systems of automobiles are now essentially a commodity, and the real product differentiation occurs in the software systems. Many cars are equipped with full blown 32bit real-time memory protected operating systems such as QNX.
A new invention by Carmelo Scuderi has the potential to permanently change the combustion engine. The engine is still in the process of patenting, raising capital, and developing a prototype. The invention has the ability to improve the efficiency of an engine from 33% to 40%, an unheardof improvement. In addition, toxic emissions will be reduced by as much as 80%. The new invention calls for dividing the four strokes of a normal engine over a combination of one compression cycle and one power cycle. The development will also create more power and will cost manufacturers less to produce.

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From Wikipedia, the free encyclopedia
Truck

The driver of this DAF tractor with an auto-transport semi-trailer prepares to offload Skoda Octavia cars in Cardiff, WalesFor other meanings, see Truck (disambiguation).
A truck (lorry in British English) is a motor vehicle for transporting goods. The word "truck" comes from the Greek "trochos", meaning "wheel". In America, the big wheels of wagons were called trucks. When the petrol engine driven trucks came into fashion, these were called "motortrucks". Slowly the word motor in front of truck disappeared.
Unlike automobiles, which usually have a unibody construction, most trucks (with the exception of the car-like minivan) are built around a strong frame called a chassis. They come in all sizes, from the automobile-sized pickup truck to towering off-road mining trucks or heavy highway semi-trailers.
The term "truck" is most commonly used in American English and Australian English to refer to what earlier was called a motor truck, while the equivalent term in British English is lorry (although the official term is Heavy Goods Vehicle (HGV)). The British term is, however, only used for the medium and heavy types (see below), i.e. a van, a pickup or a SUV would never be regarded a "lorry" . Other languages have loanwords based on these terms, such as the Malay lori.
In Australia and New Zealand a small vehicle with an open back is called a ute (short for "utility vehicle") and the word "truck" is reserved for larger vehicles.
A road train in Australia.
A British Sentinel steam lorry.Contents [hide]
1 History
1.1 Steam trucks
1.2 Internal combustion
1.3 Diesel engines
1.4 Legal issues
2 Types of trucks by size
2.1 Light trucks
2.2 Medium trucks
2.3 Heavy trucks
2.4 Off-road trucks
3 Anatomy of a truck
3.1 Chassis
3.2 Cab
3.3 Engine
3.4 Drivetrain
4 Quality and sales
4.1 Heavy trucks market worldwide
4.1.1 United States
4.1.2 Europe
4.1.3 Asia
4.1.4 South America
5 References
6 See also
7 External links

History
Steam trucks
Trucks and cars have a common ancestor: the steam-powered "fardier" Nicolas-Joseph Cugnot built in 1769. However, steam trucks were not common until the mid-1800s. The roads of the time, built for horse and carriages, limited these vehicles to very short hauls, usually from a factory to the nearest railway station. The first semi-trailer appeared in 1881, towed by a De Dion steam tractor. Steam-powered trucks were sold in France and the United States until the eve of World War I, and the beginning of World War II in the United Kingdom.

Internal combustion
a Benz truck modified by Netphener company (1895) as the first busIn 1895 Karl Benz designed the first truck in history using the internal combustion engine, with some of the units later modified by the first bus company: the Netphener. Another internal combustion engine truck was built in 1898 by Gottlieb Daimler. Others, such as Peugeot, and Renault also built theirs. Trucks of the era mostly used two-cylinder engines and could have a carrying capacity 1500 to 2000 kg. In 1904, 700 heavy trucks were built in the United States, 1000 in 1907, 6000 in 1910 and 25000 in 1914.
After World War I, several advances were made: pneumatic tyres replaced full rubber, electric starters, power brakes, 4, 6 and 8 cylinder engines, closed cabs, electric lighting. The first modern semi-trailers also appeared. Touring car builders such as Ford and Renault entered the heavy truck market.

Diesel engines
Although it had been invented in 1890, the diesel engine was not common in trucks in Europe until the 1920s. In the United States, it took much longer for diesel engines be accepted: gasoline engines were still in use on heavy trucks in the 1970s, while in Europe they had been completely replaced 20 years earlier.

Legal issues
Trucks must often pay higher taxes than other road vehicles, and are subject to extensive regulation. Amongst factors affecting this: trucks are bigger and heavier than most other vehicles, and cause more wear and tear per hour on roadways; and trucks and their drivers are on the road for more hours per day. UPS vehicles are called 'package cars' in the US, because that exempted them from certain tax-rates. Rules on use taxes differ among jurisdictions.
Most jurisdictions have rules for commercial vehicles, regulating how many hours a driver may be on the clock, how much rest and sleep time is required (e.g., 11hrs on/10hrs off, and 60hrs off over every 7 days), and many other rules. Violations are often subject to significant penalties. Instruments to track each driver's hours must often be fitted.
Trucks are subject to noise emission requirements (emanating from the U.S. Noise Control Act) in order to protect the public from noise health effects, since trucks contribute disproportionately to roadway noise due to elevated stacks and intense tire and aerodynamic noise characteristics.
The Bridge Law deals with the relation between the gross weight of the truck and the amount of axles and the spacing between axles wheel base the truck has. Each State determines the minimum and maximum permissible weight per axle.

Types of trucks by size
A logging truck]
Light trucks
Light trucks are car-sized (in the US, no more than 6,300 kg (13,000 lb)) and are used by individuals and commercial entities alike. They are comprised of:
Pickup trucks
Full-size vans
Minivans
SUVs
Medium trucks
Medium (or medium-duty) trucks are bigger than light but smaller than heavy trucks. In the US, they are defined as weighing between 6,300 kg (13,000 lb) and 15,000 kg (33,000 lb). For the UK the cut-off is 7.5 tonnes. Local delivery and public service (dump trucks, garbage trucks) are normally around this size.

Heavy trucks
Three Road Trains, Western AustraliaHeavy trucks are the largest trucks allowed on the road. They are mostly used for long-haul purposes, often in semi-trailer configuration.
Road damage and wear increase very rapidly with the axle weight (truck weight divided by the number of axles). In many countries with good roads a 6-axle truck may have a maximum weight over 50 tonnes (50,000 kg).
In Australia many trailers are linked to make what are called road trains.

Off-road trucks
Highway-legal trucks are sometimes outfitted with off-road features such as a front driving axle and special tires for applications such as logging and construction. Trucks that never use public roads, such as the biggest ever truck, the Liebherr T 282B off-road mining truck, are not constrained by weight limits.

Anatomy of a truck
Almost all trucks share a common contruction: they are made of a chassis, a cab, axles, suspension and wheels, an engine and a drivetrain. Pneumatic, hydraulic, water, and electrical systems may also be identified.

Chassis
The chassis or frame of a truck is commonly constructed mainly of two beams, and several crossmembers and fishplates. A truck chassis consists of two parallel straight U-shaped beams, or in some cases stepped or tapered beams, these held together by crossmembers. In most instances, fishplates help attach the crossmembers to the beams. The term fishplate was derived from the old railroad. The "U-shape" of the beams has a middle vertical and longer side, and a short horizontal flange at each end; the length of the beams is variable. The chassis is usually made of steel, but can be made (whole or in part) of aluminium for a lighter weight. The integrity of the chemical composition (carbon, molybdenum, etc.) and structure of the beams is of uttermost importance to its strength, and to help prevent cracking or breaking of beams, and to help maintain rigidity and flexibility of the frame, welding, drilling and other types of modifications must not be unnecessarily practiced on these. The chassis is the main structure of the truck, and the other parts attach to it. A tow bar may be found attached at one or both ends.

Cab
The cab is an enclosed space where the driver is seated. A sleeper is a compartment attached to the cab where the driver can rest while not driving. They can range from a simple 2 to 4 foot (0.6 to 1.2 m) bunk to a 12 foot (3.7 m) apartment-on-wheels. Modern cabs feature air conditioning, a good sound system, and ergonomic seats (often air suspended). There are a few possible cab configurations:
cab over engine (COE) or flat nose, where the driver is seated on top of the front axle and the engine. This design is almost ubiquitous in Europe, where overall truck lengths are strictly regulated. They were common in the United States, but lost prominence when permitted length was extended in the early 1980s. To access the engine, the whole cab tilts forward, earning this design the name of tilt-cab.
A concrete transport truck.conventional cabs are the most common in North America. The driver is seated behind the engine, as in most passenger cars or pickup trucks. Conventionals are further divided into large car and aerodynamic designs. A large car or long nose is a conventional truck with a long�6 to 8 foot (1.8 to 2.4 m) or more�hood. With their very square shapes, these trucks offer a lot of wind resistance and can consume more fuel. They also offer poorer visibility than their aerodynamic or COE counterparts. By constrast, Aerodynamic cabs are very streamlined, with a sloped hood and other features to lower drag. Most owner-operators prefer the square-hooded conventionals, it has something to do with "Take pride in your ride".
cab beside engine designs also exist, but are rather rare.
Slang terms
"Tiltin' Hilton" :Cab-over with a sleeper berth.
"Anteater" : Specifically refers to the Kenworth T600, an aerodynamically-designed tractor whose nose resembles the anteater.
"Large car" : A conventional cab with a large square hood, such as the Peterbilt 379 or the Kenworth W900.
[edit]
Engine
Trucks can use all sorts of engines. Small trucks such as SUVs or pickups, and even light medium-duty trucks in North America will use gasoline engines. Most heavier trucks use four stroke turbo intercooler diesel engines, although there are alternatives. Huge off-highway trucks use locomotive-type engines such as a V12 Detroit Diesel two stroke engine.
In the United States, highway trucks almost always use an engine built by a third party, such as CAT, Cummins, or Detroit Diesel. The only exceptions to this are Volvo Trucks and Mack Trucks, which are available with Volvo and Mack diesel engines, respectively, and Freightliner, which is a subsidiary of DaimlerChrysler and are available with Mercedes-Benz and Detroit Diesel engines.

Drivetrain
Small trucks use the same type of transmissions as almost all cars which have either an automatic transmission or a manual transmission with synchronisers. Bigger trucks often use manual transmissions without synchronisors which are lighter weight although some synchronised transmissions have been used in larger trucks. Transmissions without synchronisors require double clutching for each shift which can lead to repetitive motion injuries. Common North American setups include 10, 13 and 18 speeds. Automatic and semi-automatic transmissions for heavy trucks are becoming more and more common, due to advances both in transmission and engine power.
The trend in Europe is that more new trucks are being bought with automatic transmissions. This may be due in part to lawsuits from drivers claiming that driving a manual transmission is damaging to their knees.

Quality and sales
Quality among all heavy truck manufacturers in general is improving, however industry insiders will testify that the industry has a long way to go before they achieve the quality levels reached by automobile manufacturers. Part of the reason for this is that 75% of all trucks are custom specified. This works against efforts to streamline and automate the assembly line.

Heavy trucks market worldwide
Production of trucks over 16 tonnes GVW in 2003 by the ten largest manufacturers [1] Pos. Make Units Main makes
1 DaimlerChrysler 147,200 Mercedes-Benz, Unimog, Freightliner, Western Star, Sterling
2 Volvo 123,800 Volvo, Renault, Mack
3 PACCAR 81,900 Kenworth, Peterbilt, DAF, Foden, Leyland
4 Scania 46,000 Scania
5 MAN 42,100 MAN
6 Iveco 32,700 Iveco, Astra, Seddon Atkinson
7 Navistar 27,400 International
8 Hino Motors 21,400 Hino
9 Isuzu 20,900 Isuzu
10 Mitsubishi-Fuso 16,300 Fuso
DaimlerChrysler didn't hold majority in Mitsubishi Fuso in 1923, which is why the two companies are listed separately.

United States
Smaller fleet operators, specialized carriers, and owner operators tend to prefer Mack or Peterbilt and Kenworth products. Larger fleet operators and public agencies tend to prefer the lower cost Freightliners, Navistar, and Ford products. There are also regional preferences with truck drivers within the United States.
On the East Coast, where routes were traditionally shorter, and because the trucks were made there, many drivers preferred Mack Trucks. While on the West Coast, the drivers preferred Peterbilt, Kenworth, and Freightliner. White built a new factory in California in the early 1960s, with long-haul trucking company Consolidated Freightways. The entity, which became White-Freightliner, then just Freightliner, catered directly to western fleets that wanted a lighter-aluminium cab and frame, and traveled longer-straighter distances without stopping. Drivers more concerned with safety than with fuel-economy preferred the heavier Peterbilts and Kenworths. Kenworth and Peterbilt, which had started out as heavy-duty trucks for hauling logs, forest products, and steel for shipyards on the West Coast, anticipated the need for these lighter long-distance trucks.

For more information on Trucks, please visit Wikipedia.

From Wikipedia, the free encyclopedia
Insurance
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.
Contents
1 Principles of insurance
2 Insurance Contract Principles
2.1 Personal Contract
2.2 Conditional Contract
2.3 Unilateral Contract
2.4 Contract of Adhesion
2.5 Contract of Indemnity
2.6 Insurable Interest
3 Indemnification
4 How an insurance company makes money
5 Determination of rate structures
6 Gambling analogy
7 History of insurance
8 Types of insurance
9 Types of insurance companies
10 Life insurance and saving
11 Size of global insurance industry
12 Life Insurance Industry - India
13 Financial viability of insurance companies
14 Controversies
14.1 Insurance insulates too much
14.2 Complexity of insurance policy contracts
14.3 Redlining
14.4 Health insurance
14.5 Dental insurance
14.6 Insurance Patents
14.7 The insurance industry and rent seeking
15 Glossary
16 Quote
17 See also
17.1 Lists
18 External links

Principles of insurance
The timing or occurrence of the loss must be uncertain.
The rate of losses must be relatively predictable: In order to set premiums (prices) insurers must be able to estimate them accurately. This is done using the Law of Large Numbers which states that: The larger the number of homogenous exposures considered, the more closely the losses reported will equal the underlying probability of loss. If the coverage is unique, the insured will pay a correspondingly higher premium. Lloyd's of London often accepts unique coverages. (e.g., the insuring of Tina Turner's legs and Jennifer Lopez's buttocks)
The losses must be predictable on a macro level: Insurers need to know how much they would be required to pay when the insured-for event occurs. Most types of insurance have maximum levels of payouts, but not all do, notably health insurance.
The loss must be significant: The legal principle of De minimis dictates that trivial matters are not covered. Furthermore, rational insurance uses existing insurance when the transaction costs dictate that filing a claim is not rational.
The loss must not be catastrophic: If the insurer is insolvent, it will be unable to pay the insured. In the United States, there is a system of Guaranty Funds run at the state level to reimburse insured people whose insurance companies have become insolvent. [1] This program is run by the National Association of Insurance Commissioners (NAIC). [2] To avoid catastrophic depletion of their own capital, insurers almost universally purchase reinsurance to protect them against excessively large accumulations of risk in a single area, and to protect them against large-scale catastrophes.

Insurance Contract Principles
A property or liability insurance policy is a "personal contract," a "conditional contract," a "unilateral contract," a "contract of adhesion," a "contract of indemnity," and a contract which requires that the person insured have an insurable interest at the time of the insured-against contingency.

Personal Contract
Property and liability insurance policies cover persons and not property or operations. Although the terms "insured my house" or "insured my motorcycle" are used commonly, they are not technically correct. The contract between the insurer and the insured is a personal contract between an insuring entity and a person(s) and not the object being insured. In other words, the question of whether payment is due upon the occurrence of a contingency, and how such payment will be measured, depends upon economic loss suffered by the person(s).

Conditional Contract
Property and liability insurance policies are said to be "conditional contracts" because the obligation of the insurer to perform may be conditioned upon the insured satisfying certain conditions.

Unilateral Contract
Only one party is legally bound to contractual obligations after the premium is paid to the insurer. Only the insurer has made a promise of future performance, and only the insurer can be charged with breach of contract.

Contract of Adhesion
Property and liability insurance policies are said to be "contracts of adhesion" because the insurer and insured parties are of unequal bargaining power where the insured party cannot negotiate the terms of the contract and must take the offer of the insurer as made. Importantly, the rule of law regarding "contracts of adhesion" is that any ambiguities resolve in favor of the insured.

Contract of Indemnity
Property and liability insurance policies are said to be "contracts of indemnity" because the purpose of insurance is to indemnify the insured--that is, to make good a loss that the insured has suffered. The principle of indemnification is that the insured should not profit from the policy. This does not preclude that the insured will suffer some loss. In fact, many policies include a deductible which guarantees that the insured will pay part of each loss himself.

Insurable Interest
Insurable interest is one wherein economic loss would be suffered from an adverse occurrence to the person(s) insured.

Indemnification
An entity seeking to transfer risk (an individual, corporation, or association of any type) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, defined as an insurance 'policy'. This legal contract sets out terms and conditions specifying the amount of coverage (compensation) to be rendered to the insured, by the insurer upon assumption of risk, in the event of a loss, and all the specific perils covered against (indemnified), for the term of the contract.
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the amount of loss as specified by the policy contract. The fee paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many clients are used to fund accounts set aside for later payment of claims - in theory for a relatively few claimants - and for overhead costs. So long as an insurer maintains adequate funds set aside for anticipated losses, the remaining margin becomes their profit.

How an insurance company makes money
A customer might pay one or more premium payments over time. The company collects these payments from one or more customers. If something happens which triggers a claim, the company then pays out a certain amount of money. If, during the lifetime of all of the company's insurance contracts, it pays out less than it has taken in, it makes what is known as an underwriting profit. One measure of an insurance company's performance is their loss ratio (incurred losses and loss-adjustment expenses divided by net earned premium). The loss ratio is added to the expense ratio (underwriting expenses divided by net premium written) to determine the company's combined ratio. The combined ratio is a reflection of the company's overall underwriting profitability. A combined ratio of less than 100 percent indicates a profit, while anything over 100 is a loss. One company that is famous for achieving underwriting profit is American International Group. Berkshire Hathaway, by contrast, is famous for making its money on "float" rather than underwriting profit. Float is the concept that as insurance premiums are collected up front, and claims paid over time (sometimes up to periods of 10 years or more), the insurance companies are able to collect investment income on the money they have reserved for claims that have not occurred yet, or have not yet been paid. Over time, this interest is compounded into significant dollars, particularly for a company as large as Berkshire Hathaway.
In many cases a company's combined ratio is greater than 100 percent, however the company still manages to make money. This is because in between the time the company collects premiums and when it pays out claims, it can invest that money. The return from these investments may offset an underwriting loss resulting in profit. For example, if a company has to pay out 10 percent more than it took in, but made a 20 percent return on its investment, then it made a 10 percent profit. However, since most insurance companies consider it only prudent (and may be mandated to do so by laws controlling insurance businesses in the territory in which they operate) to invest in risk-free government bonds, or other lower risk and lower return forms of investments, it's important that the extra amount it has to pay out compared to what it has to take in is less than the percent return of these investments. If it isn't, the company loses money. The extra amount that a company has to pay out can be considered a "cost of funds" and be compared to an interest rate of the same company borrowing money. Because of this, most insurance companies don't have a goal just to have any amount of profit over the cost of funds, but rather to have this cost of funds be lower than what they would have been able to get by borrowing somewhere else. If this isn't the case, the insurance company does not add any value to their owners, who theoretically could have borrowed money from somewhere else and made the same investments themselves.
Although insurers traditionally depended upon underwriting profit to provide them with operating profit, market forces now require that insurers earn the bulk of their profit on investment income on premiums held pending claims occurrence. This is a form of financial leveraging.

Determination of rate structures
The insurer uses actuarial science to quantify the risk they are willing to assume. Data is generated to approximate future claims, ordinarily with reasonable accuracy. Actuarial science uses statistics and probability to analyze the risks associated with the range of perils covered, and these scientific principles are used by insurers, in conjunction with additional factors, to determine rate structures.
For example, many individuals purchase homeowner's insurance policies by signing a contract paying a premium to an insurance company. If a covered loss occurs, the insurer is obliged by the terms of the contract to honor the insured's claim. For some policyholders, the amount of insurance benefits received from their insurer will greatly exceed the expense of premiums paid. Others may never make a claim or receive any benefit other than the peace of mind rendered by the security of an insurance policy. When averaged, the total claims expense paid by an insurer should be less than the total premiums paid by their policyholders, with the difference allocated to overhead and profit.
Insurance companies also earn investment profits. These are generated by investing premiums received until they are needed to pay claims. This money is called the 'float'. The insurer may make profits or losses from the value change in the float as well as interest or dividends on the float. In the United States, the underwriting loss of property and casualty insurance companies was $142.3 billion in the five years ending 2003. But overall profit for the same period was $68.4 billion, at the result of float. Some insurance industry insiders, most notably Hank Greenberg, do not believe that it is forever possible to sustain a profit from float without an underwriting profit as well, but this opinion is not universally held.

Gambling analogy
Some people consider insurance a type of wager (particularly as associated with moral hazard) that executes over the policy period. The insurance company bets that you or your property will not suffer a loss while you put money on the opposite outcome. The difference in the fees paid to the insurance company versus the amount for which they can be held liable if an accident happens is roughly analogous to the odds one might expect when betting on a racehorse (for example, 10 to 1). For this reason, a number of religious groups, including the Amish and Muslims, avoid insurance and instead depend on support provided by their communities when disasters strike. This can be thought of as "social insurance," as the risk of any given person is assumed collectively by the community who will all bear the cost of rebuilding. In closed, supportive communities where others can be trusted to step in to rebuild lost property, this arrangement can work.
However, most societies could not effectively support this type of system, and the system will not work for large risks. For very large risks, Western insurance can also run into difficulties. This is the reason why most US homeowner's insurance does not cover floods. A company that sells homeowner's insurance in a given city can accurately estimate the number of claims it would have to pay due to fires, tornadoes, and other smaller-scale disasters. However, a flood may impact a large percentage of the city and the company might be unable to deal with this. A prime example of this is the flooding in New Orleans as a result of Hurricane Katrina. For the same reason, losses due to war and earthquakes are generally excluded. In the case of floods and earthquakes (which are smaller-scale than war) homeowners can purchase separate insurance from national companies with larger resources, which are able to distribute the risk across regions rather than individual buildings.
In gaming or gambling, the game is fixed at the start so that the odds are not affected by the players. However, to obtain certain types of insurance, such as fire insurance, policyholders are often required to conduct risk mitigation practices, such as installing sprinklers and using fireproof building materials to reduce the odds of loss to fire. In addition, after a proven loss, insurers specialize in providing rehabilitation to minimize the total loss.
While insurance is analogous to gambling in terms of risk and reward, the main difference is in the motivation behind the process (risk seeking vs. risk avoidance). When gambling, you are assuming risk that you would not otherwise be exposed to that has the possibility of either a loss or a gain (speculative risk). With insurance, you are managing risk that you could not otherwise avoid, and which does not present the possibility of gain (pure risk). Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. Avoiding, mitigating and transferring certain risk creates greater predictability for consumers and business, and allows people and organizations to use risk intelligently to maximize their opportunities.
Historically, gambling has been considered an uninsurable risk. Recent developments, however, have led to the invention and patenting of new types of insurance to protect against gambling losses. An example is United States Patent 6,869,362, "Method and apparatus for providing insurance policies for gambling losses"

History of insurance
Early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennium BC respectively. Chinese merchants traveling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practiced by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen.
A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage.
The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which acted to care for the families and funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used in case of emergency.
Separate insurance contracts (i.e. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.
Toward the end of the seventeenth century, the growing importance of London as a center for trade led to rising demand for marine insurance. In the late 1680s, Mr. Edward Lloyd opened a coffee house which became a popular haunt of ship owners, merchants, and ships� captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster Nicholas Barbon opened an office to insure buildings. In 1680 he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes.
The first insurance company in the United States provided fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732.
Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses.
In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual State insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioner's organization. In recent years, some have called for a federal regulatory system for insurance similar to that of the banking industry.
In the State of New York, which has unique laws in keeping with its stature as a global business center, Attorney General Eliot Spitzer has been in a unique position to grapple with major national insurance brokerages. Spitzer alleged that Marsh & McLennan steered business to insurance carriers based on the amount of contingent commissions that could be extracted from carriers, rather than basing decisions on whether carriers had the best deals for clients. Several of the largest commercial insurance brokerages have since stopped accepting contingent commissions and have adopted new business models.

Types of insurance
Any risk that can be quantified probably has a type of insurance to protect it. Among the different types of insurance are:
Automobile insurance, also known as auto insurance, car insurance and in the UK as motor insurance, is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the vehicle itself. Over most of the United States purchasing an auto insurance policy is required to legally operate a motor vehicle on public roads. Recommendations for which policy limits should be used are specified in a number of books. In some jurisdictions, bodily injury compensation for automobile accident victims has been changed to No Fault systems, which reduce or eliminate the ability to sue for compensation but provide automatic eligibility for benefits.
Boiler insurance (also known as Boiler and Machinery insurance or Equipment Breakdown Insurance)
Casualty insurance insures against accidents, not necessarily tied to any specific property.
Credit insurance pays some or all of a loan back when certain things happen to the borrower such as unemployment, disability, or death.
Financial loss insurance protects individuals and companies against various financial risks. For example, a business might purchase cover to protect it from loss of sales if a fire in a factory prevented it from carrying out its business for a time. Insurance might also cover failure of a creditor to pay money it owes to the insured. Fidelity bonds and surety bonds are included in this category.
Health insurance covers medical bills incurred because of sickness or accidents.
Liability insurance covers legal claims against the insured. For example, a homeowner's insurance policy provides the insured with protection in the event of a claim brought by someone who slips and falls on the property, and brings a lawsuit for her injuries. Similarly, a doctor may purchase liability insurance to cover any legal claims against him if his negligence (carelessness) in treating a patient caused the patient injury and/or monetary harm. The protection offered by a liability insurance policy is two-fold: a legal defense in the event of a lawsuit commenced against the policyholder, plus indemnification (payment on behalf of the insured) with respect to a settlement or court verdict.
Life insurance provides a cash benefit to a decedent's family or other designated beneficiary, and may specifically provide for burial and other final expenses.
Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance. Annuities and pensions that pay a benefit for life are sometimes regarded as insurance against the possibility that a retiree will outlive his or her financial resources. In that sense, they are the complement of life insurance.
Total permanent disability insurance insurance provides benefits when a person is permanently disabled and can no longer work in their profession, often taken as an adjunct to life insurance.
Locked Funds Insurance is a little known hybrid insurance policy jointly issued by governments and banks. It is used to protect public funds from tamper by unauthorised parties. In special cases, a government may authorise its use in protecting semi-private funds which are liable to tamper. Terms of this type of insurance are usually very strict. As such it is only used in extreme cases where maximum security of funds is required.
Marine Insurance covers the loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.
Nuclear incident insurance - damages resulting from an incident involving radioactivive materials is generally arranged at the national level. (For the United States, see Price-Anderson Nuclear Industries Indemnity Act.)
Environmental Liability Insurance protects the insured from bodily injury, property damage and clean-up costs as a result of the dispersal, release or escape of a pollutant.
Political risk insurance can be taken out by businesses with operations in countries in which there is a risk that revolution or other political conditions will result in a loss.
Professional Indemnity Insurance is normally a mandatory requirement for professional practitioners such as Architects, Lawyers, Doctors and Accountants to provide insurance cover against potential negligence claims. Non licensed professionals may also purchase malpractice insurance, it is commonly called Errors and Omissions Insurance and covers a service provider for claims made against them that arise out of the performance of specified professional services. For instance, a web site designer can obtain E&O insurance to cover them for certain claims made by third parties that arise out of negligent performance of web site development services.
Property insurance provides protection against risks to property, such as fire, theft or weather damage. This includes specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance or boiler insurance.
Terrorism insurance
Title insurance provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. It is usually issued in conjunction with a search of the public records done at the time of a real estate transaction.
Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities.. etc.
Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expense incurred due to a job-related injury.
A single policy may cover risks in one or more of the above categories. For example, car insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from say, causing an accident). A homeowner's insurance policy in the US typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of health insurance for medical expenses of guests who are injured on the owner's property.
Potential sources of risk that may give rise to claims are known as "perils". Examples of perils might be fire, theft, earthquake, hurricane and many other potential risks. An insurance policy will set out in details which perils are covered by the policy and which are not.

Types of insurance companies
Insurance companies may be classified as
Life insurance companies, who sell life insurance, annuities and pensions products.
Non-life or general insurance companies, who sell other types of insurance.
In most countries, life and non-life insurers are subject to different regulations, tax and accounting rules. The main reason for the distinction between the two types of company is that life business is very long term in nature � coverage for life assurance or a pension can cover risks over many decades. By contrast, non-life insurance cover usually covers a shorter period, such as one year.
Insurance companies are generally classified as either mutual or stock companies. This is more of a traditional distinction as true mutual companies are becoming rare. Mutual companies are owned by the policyholders, while stockholders, (who may or may not own policies) own stock insurance companies.
Reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce their risks and protect themselves from very large losses. The reinsurance market is dominated by a few very large companies, with huge reserves.
Captive Insurance companies may be defined as limited purpose insurance companies established with the specific objective of financing risks emanating from their parent group or groups. This definition can sometimes be extended to include some of the risks of the parent company's customers. In short terms, it is an in-house self-insurance vehicle. Captives may take the form of a "pure" entity (which is a 100% a subsidiary of the self-insured parent company); of a "mutual" captive (which insures the collective risks of industry members) and of an "association" captive (which self-insures individual risks of the members of a professional, commercial or industrial association). Captives represent commercial, economic and tax advantages to their sponsors due to the reductions on costs they help create, the ease for insurance risk management and the flexibility for cash flows they generate. Additionally, they may provide coverage of risks which are neither available nor offered in the traditional insurance market at reasonable prices.
The types of risk that a captive can underwrite for the parent include property damage, public and products liability, professional indemnity, employee benefits, employers liability, motor and medical aid expenses. The captive's exposure to such risks may be limited by the use of reinsurance.
Captives are becoming an increasingly important component of the risk management and risk financing strategy of their parent. This can be understood against the following background:
heavy and increasing premium costs in almost every line of coverage;
difficulties in insuring certain types of fortuitous risk;
differential coverage standards in various parts of the world;
rating structures which reflect market trends rather than individual loss experience;
insufficient credit for deductibles and/or loss control efforts.
There are also companies known as 'insurance consultants'. Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy amongst many companies .
Similar to an insurance consultant, an 'insurance broker' also shops around for the best insurance policy amongst many companies. However, with insurance brokers, the fee is usually paid in the form of commission from the insurer that is selected rather than directly from the client.
Third Party Administrators are companies that perform underwriting and sometimes claims handling services for insurance companies. These companies often have special expertise that the insurance companies do not have.

Life insurance and saving
Certain life insurance contracts accumulate cash values, which may be taken by the insured if the policy is surrendered or which may be borrowed against. Some policies, such as annuities and endowment policies, are financial instruments to accumulate or liquidate wealth when it is needed. See life insurance.
In many countries, such as the US and the UK, tax law provides that the interest on this cash value is not taxable under certain circumstances. This leads to widespread use of life insurance as a tax-efficient method of saving as well as protection in the event of early death.

Size of global insurance industry
Global insurance premiums grew by 9.7% in 2004 to reach $3.3 trillion. This follows 11.7% growth in the previous year. Life insurance premiums grew by 9.8% during the year due to rising demand for annuity and pension products. Non-life insurance premiums grew by 9.4% as premium rates increased. Over the past decade, global insurance premiums rose by more than a half as annual growth fluctuated between 2% and 10%.
Advanced economies account for the bulk of global insurance. With premium income of $1,217bn in 2004, North America was the most important region, followed by the EU ($1,198bn) and Japan ($492bn). The top four countries accounted for nearly two-thirds of premiums in 2004. The US and Japan alone accounted for a half of world insurance, much higher than their 7% share of the global population. Emerging markets accounted for over 85% of the world�s population but generated only 10% of premiums. The volume of UK insurance business totalled $295bn in 2004 or 9.1% of global premiums. [3]

Life Insurance Industry

Financial viability of insurance companies
Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses). A number of independent rating agencies, such as Best's, provide information and rate the financial viability of insurance companies.

Controversies
Insurance insulates too much
By creating a "security blanket" for its insureds, an insurance company may inadvertently find that its insureds may not be as risk-averse as they should be (since the insured assumes the risk belongs to the insurer). This problem is known to the insurance industry as moral hazard. To reduce their own financial exposure, insurance companies have contractual clauses that mitigate their obligation to provide coverage if the insured engages in some kind of behavior that grossly magnifies their risk of loss or liability.
For example, liability insurance providers do not provide coverage for liability arising from intentional torts committed by the insured. Even if a provider was irrational enough to try to provide such coverage, it is against the public policy of most countries to allow such insurance to exist, and thus it is usually illegal.

Complexity of insurance policy contracts
Insurance policies can be complex and some policyholders may not understand all the fees, regulation and coverages included in a policy. As a result, people could buy policies at unfavorable terms. In response to these issues, governments often make detailed regulations that set down minimum standards for policies and govern how they may be advertised and sold.
Many individuals purchase policies through an insurance broker. The broker can counsel the policyholder on which coverage to purchase and limitations of the policy. A broker generally holds contracts with many insurers which allows the broker to "shop" the market for the best rates and coverage possible.

Redlining
Redlining is the practice of some insurance companies to deny the issuance of coverage in specific geographic areas, with the purported reason of an increased likelihood of risk; the validity of the assessment is often attributed to discrimination.
Evaluation of risk, when an insurer determines a premium or premium rate structure, considers quantifiable factors, including location, credit scores, gender, occupation, marital status, and education level. However, the use of these essential factors, whether inappropriately or not, are often considered to be unfair or discriminatory by some consumers and their advocates, sometimes leading to political disputes about insurers' determination of premiums and possible government intervention to limit the factors used.
A refutation to this is that the job of an insurance underwriter is to properly categorize a given risk as to the likelihood that the loss will occur. Any factor that causes a greater likelihood of loss should in theory, be charged a higher rate. This is a basic principle of insurance and must be followed for insurance companies or groups to operate properly, even for non-profit organizations. Thus, discrimination of potential insureds by legitimate factors is central to insurance. Therefore the only thing that can be considered legitimately unfair are practices that discriminate against a given group without actual factors that show that the group is a higher risk. So, eliminating real factors discriminates against other insureds by forcing them to bear part of the cost of the disallowed perceived factors.

Health insurance
Health insurance, which is coverage for individuals to protect them against medical costs, is a highly charged and political issue in the United States, which does not have socialized health coverage. In theory, the market for health insurance provision should function in a manner similar to other insurance coverages, but the skyrocketing cost of health coverage has disrupted markets around the globe, but perhaps most glaringly in the US. Please see health insurance for a discussion of this category.

Dental insurance
Dental insurance, like health insurance, is coverage for individuals to protect them against dental costs. Dental insurance usually goes hand-in-hand with health insurance, with most people in the United States receiving it included in their health insurance plan from their employer. Along with receiving dental insurance from your employer, there are ways to receive dental insurance through resellers and companies for individuals and families; although this way tends to be too expensive for most people.

Insurance Patents
New insurance products can now be protected from copying with a business method patent. This may lead to the more rapid introduction of new insurance products as insurance companies will invest more heavily in new product development if they can be reasonably assured that their patents will keep those products from being copied.
A recent example of a new insurance product that is patented is telematic auto insurance. It was independently invented and patented by a major US auto insurance company, Progressive Auto Insurance (US patent 5,797,134) and a Spanish independent inventor, Salvador Minguijon Perez (European Patent EP0700009B1).
The basic idea of telematic auto insurance is that a driver's behavior is monitored directly while the person drives and this information is transmitted to an insurance company. The insurance company then assesses the risk of that driver having an accident and charges insurance premiums accordingly. A driver that drives a lot of distance at high speed, for example, will be charged a higher rate than a driver that drives small distances at low speed.
A British auto insurance company, Norwich Union, has taken a license to both the Progressive patent and Perez patent. They have made additional investments in infrastructure and developed a commercial offering called "Pay As You Drive" or PAYD.
Many independent inventors are in favor of patenting new insurance products since it gives them protection from big companies when they bring their new insurance products to market. Independent inventors account for 70% of the new US patent applications in this area.
Many insurance executives are opposed to patenting insurance products because it creates a new risk for them. The Hartford insurance company, for example, had to recently pay US$80 million to an independent inventor, Bancorp Services, in order to settle a patent infringement and theft of trade secret lawsuit for a new type of corporate owned life insurance product invented and patented by Bancorp.
There are currently about 150 new patent applications on insurance inventions filed per year in the United States. (Source: Insurance IP Bulletin, December 15, 2005). Only about 20 - 30 patents per year, however, are actually issued.

The insurance industry and rent seeking
Certain insurance products and practices have been described as rent seeking by critics. That is, insurance companies have been alleged to have certain products or practices that are only useful due to certain government laws (especially tax laws), and that the insurance industry in these cases generally adds no economic value but instead supports politicians who will continue the legal regime which gives the insurance company these benefits. For example, in the United States the current tax rules generally allow owners of variable annuities (see annuity (US financial products) and variable life insurance (see variable universal life insurance) to invest in the stock market and defer or eliminate paying any taxes until withdrawals are made. Sometimes this tax deferral is the only reason some individuals use these products instead of a mutual fund. Another example is the legal infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an estate tax while the proceeds itself are immune from the estate tax.

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From Wikipedia, the free encyclopedia
Agency
Agency is an area of Commercial law dealing with a contractual or quasi-contractual tripartite set of relationships when an Agent is authorised to act on behalf of another (called the Principal) to create a legal relationship with a Third Party. This branch of law separates and regulates the relationships between:
Agents and Principals;
Agents and the Third Parties with whom they deal on their Principals' behalf; and
Principals and the Third Parties when the Agents purport to deal on their behalf.
The common law principle in operation is usually represented in the Latin phrase, qui facit per alium, facit per se, i.e. the one who acts through another, acts in his or her own interests and it is a parallel concept to vicarious liability and strict liability in which one person is held liable in Criminal Law or Tort for the acts or omissions of another..
Contents
1 The concepts
2 Brief statement of legal principles
2.1 Authority
2.2 Liability of Agent to Third Party
2.3 Liability of Agent to Principal
2.4 Liability of Principal to Agent
2.5 Liability of Third Party to Principal
2.6 Duties
2.7 Termination
3 Agency and partnership
4 Agency relationships

The concepts
The reciprocal rights and liabilities of Principal and Agent reflect commercial needs and legal realities. In any business of size, it is not possible for one person to travel everywhere to negotiate all the transactions necessary to maintain or grow the business. These problems are increased if the business is a corporation, because it is then a fictitious legal person and, as such, it can only act through human agents. Hence, independent people are contracted by businesses to buy and sell goods and services on behalf of those businesses. When agreements are made, the Principal is liable under the contract(s) made by the Agent. So long as the Agent has done what he or she was instructed to do, the result is the same as if the Principal had done it directly.
If the issue is considered from the view of innocent Third Parties, they are approached by a person who is clearly identified as acting for another. They deal with that person in good faith, relying on the representation of authority. Indeed, in a busy commercial world, it would not be cost-effective to check that everyone who is represented as having the authority to act for another actually has that authority. Deals are done at face value in the majority of routine situations. If it should later appear that the alleged agent was acting without the consent of the Principal, the Principal will usually be held liable. Any other decision would be unduly disruptive to the usual flow of trade. This commercial necessity has led to the creation of a body of law that applies in any situation, commercial or otherwise, where one person is seen to be acting for another.

Brief statement of legal principles
There are three broad classes of Agent:
Universal Agents hold broad authority to act on behalf of the Principal, e.g. they may hold a power of attorney (also known as a mandate in civil law jurisdictions) or have a professional relationship, say, as lawyer and client.
General Agents hold a more limited authority to conduct a series of transactions over a continuous period of time; and
Special Agents are authorised to conduct either only a single transaction or a specified series of transactions over a limited period of time.

Authority
For these purposes, the Principal must give, or be deemed to give, the Agent authority to act.

Actual authority:
This arises where the Principal's words or conduct reasonably cause the Agent to believe that he or she has been authorised to act. This may be express in the form of a contract or implied because what is said or done make it reasonably necessary for the person to assume the powers of an Agent. If it is clear that the Principal gave actual authority to Agent, all the Agent's actions falling within the scope of the authority given will bind the Principal. This will be the result even if, having actual authority, the Agent in fact acts fraudulently for his own benefit unless the Third Party was aware of the Agent's personal agenda. If there is no contract but the Principal's words or conduct reasonably led the Third Party to believe that the Agent was authorised to act, or if what the Agent proposes to do is incidental and reasonably necessary to accomplish an actually authorised transaction or a transaction that usually accompanies it, then the Principal will be bound.
Apparent or ostensible authority:
If the Principal's words or conduct would lead a reasonable person in the Third Party�s position to believe that the Agent was authorized to act, say by appointing the Agent to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a Principal creates the impression that an Agent is authorised but there is no actual authority, Third Parties are protected so long as they have acted reasonably. This is sometimes termed "Agency by Estoppel" or the "Doctrine of Holding Out", where the Principal will be estopped from denying the grant of authority if Third Parties have changed their positions to their detriment in reliance on the representations made.
Authority by virtue of a position held:
For example, partners have apparent authority to bind the other partners in the firm, their liability being joint and several (see below), and in a corporation, all executives and senior employees with decision-making authority by virtue of their declared position have apparent authority to bind the corporation.
Even if the Agent does act without authority, the Principal may ratify the transaction and accept liability on the transactions as negotiated. This may be express or implied from the Principal's behaviour, e.g. if the Agent has purported to act in a number of situations and the Principal has knowingly acquiesced, the failure to notify all concerned of the Agent's lack of authority is an implied ratification to those transactions and an implied grant of authority for future transactions of a similar nature.

Liability of Agent to Third Party
If the Agent has actual or apparent authority, the Agent will not have liability on any transactions agreed within the scope of that authority so long as the Principal was disclosed, i.e. the fact of the agency was revealed and the identity of the Principal revealed. But where the agency is undisclosed or partially disclosed, both the Agent and the Principal are bound. Where the Principal is not bound because the Agent had no actual or apparent authority, the purported Agent is liable to the Third Party for breach of the implied warranty of authority.

Liability of Agent to Principal
If the Agent has acted without actual authority, but the Principal is nevertheless bound because the Agent had apparent authority, the Agent is liable to indemnify the Principal for any resulting loss or damage.

Liability of Principal to Agent
If the Agent has acted within the scope of the actual authority given, the Principal must indemnify the Agent for payments made during the course of the relationship whether the expenditure was expressly authorised or merely necessary in promoting the Principal�s business.

Liability of Third Party to Principal
The Third Person will be liable to the Principal on the terms of the agreement made with the Agent unless the Principal was undisclosed and there is clear evidence that either the Agent or the Principal knew that the Third Party would not have entered into the agreement if he or she had known of the Principal's involvement.

Duties
The Agent's primary fiduciary duty is to be loyal to the Principal. This involves duties:
not to accept any new obligations that are inconsistent with the duties owed to the Principal. Agents can represent the interests of more than one Principal, conflicting or potentially conflicting, only on the basis of full and timely disclosure or where the different agencies are based on a limited form of authority to prevent a situation where the Agent's loyalty to any one of the Principals is compromised. For this purpose, express clauses in the agreement signed by each Principal with the Agent may identify specific types or categories of activities that will not breach the duty of loyalty and so long as these exceptions are not unreasonable, they will bind the Principals.
not to make a private profit or unjustly enrich himself from the agency relationship.
In return, the Principal must make a full disclosure of all information relevant to the transactions that the Agent is authorised to negotiate and pay the Agent either the commission or fee as agreed, or a reasonable fee if none was agreed.

Termination
An Agent's authority can be terminated at any time. If the trust between the Agent and Principal has broken down, it is not reasonable to allow the Principal to remain at risk in any transactions that the Agent might conclude during a period of notice.

Agency and partnership
This has become a more difficult area as states are not consistent on the nature of a partnership. Some states opt for the partnership as no more than an aggregate of the natural persons who have joined the firm. Others treat the partnership as a business entity and, like a corporation, vest the partnership with a separate legal personality. Hence, for example, in English law, a partner is the agent of the other partners whereas, in Scots law where there is a separate personality, a partner is the agent of the partnership. This form of agency is inherent in the status of a partner and does not arise out of a contract of agency with a Principal. In the English Partnership Act 1890 provides that a partner who acts within the scope of his actual authority (express or implied) will bind the partnership when he does anything in the ordinary course of carrying on partnership business. Even if that implied authority has been revoked or limited, the partner will have apparent authority unless the Third Party knows that the authority has been compromised. Hence, if the partnership wishes to limit any partner's authority, it must give express notice of the limitation to the world. However, there would be little substantive difference if English law was amended (see Law Commission Report 283 [1]): partners will bind the partnership rather than their fellow partners individually. For these purposes, the knowledge of the partner acting will be imputed to the other partners or the firm if a separate personality. The other partners or the firm are the Principal and Third Parties are entitled to assume that the Principal has been informed of all relevant information. This causes problems when one partner acts fraudulently or negligently and causes loss to clients of the firm. In most states, a distinction is drawn between knowledge of the firm's general business activities and the confidential affairs as they affect one client. Thus, there is no imputation if the partner is acting against the interests of the firm as a fraud. There is more likely to be liability in tort if the partnership benefitted by receiving fee income for the work negligently performed, even if only as an aspect of the standard provisions of vicarious liability. Whether the injured party wishes to sue the partnership or the individual partners is usually a matter for the Plaintiff since, in most jurisdictions, their liability is joint and several.

Agency relationships
Agency relationships are common in many professional areas.
employment procurement (modelling agency)
real estate transactions (real estate brokerage, mortgage brokerage). In real estate brokerage, the buyers or sellers are the Principals themselves and the broker or his/her salesperson who represents each Principal is his/her Agent.
financial advice (insurance agency, stock brokerage, accountancy)
contract negotiation and promotion (business management) such as for publishing, music, movies, theatre, show business and sport.
The negotiation of entertainment and sports deals and in many day to day transactions where one person (the "agent") is allowed to stand in for another individual to fulfil their wishes. Models, actors, and athletes have Agents who secure opportunities and benefits for them. In publishing an Agent acts for an author to sell their manuscript. Publishers often pay greater attention to manuscripts submitted by an Agent than directly (via the slush pile).

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