16-12-2017, 09:55 AM
Insurance is a means of protection against financial loss. It is a form of risk management used mainly to protect against the risk of a contingent and uncertain loss. An entity that provides insurance is known as an insurer, insurance company or insurance company. A person or entity that buys insurance is known as an insured or insured. The insurance transaction implies that the insured assumes a relatively small loss guaranteed and known in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in case of a covered loss. The loss may or may not be financial, but must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by the property, possession or pre-existing relationship.
The insured receives a contract, called an insurance policy, which details the conditions and circumstances under which the insured will receive financial compensation. The amount of money charged by the insurer to the insured for the coverage established in the insurance policy is called a premium. If the insured experiences a loss potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.
