Wednesday, 5 January 2011

Insurance


In law and economicsinsurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premiumRisk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
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 (indemnify) 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.

2 comments:

  1. This comment has been removed by the author.

    ReplyDelete
  2. Hi, Nice post thanks for sharing. Would you please consider a shout out to my website on your next post, I’ll return the favor. Please email me back. Thanks!

    Aaron Grey
    aarongrey112 at gmail.com

    ReplyDelete