Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation. This compensation accounts for specified loss, damage, illness,or death in return for payment of a specified premium.
Money paid out as compensation is categorized under a policy.
It is a thing providing protection against a possible eventuality.
The term, insurance has its origin from the word ensurance, which means ensuring, assurance or a guarantee. This, further, finds its origin in the French word enseurance, a usage of the 17th century.
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent uncertain loss.
An insurer or insurance carrier is a company selling the insurance to the buyer. The buyer or the insured
or the policy holder is the person or entity buying the insurance policy. The amount of money charged for a
certain amount of insurance coverage is called the premium.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate indemnity the insured in the case of a financial personal loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be financially compensated.
certain amount of insurance coverage is called the premium.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate indemnity the insured in the case of a financial personal loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be financially compensated.
