Insurance, in law and economics, is a type of risk organization mainly used to get around alongside the risk of a deputation, doubtful loss. Insurance is definite as the reasonable transmit of the threat of a loss, from one person to another, in replace for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or unit trading insurance procedure. The insurance fee is a characteristic used to create the amount to be charged for a definite amount of insurance action, called the premium. Risk management, the exercise of assessing and controlling risk, has developed as a separate field of study and practice.
The operation engages the assured presumption a guaranteed and known comparatively small loss in the form of expense to the insurer in replace for the insurer's guarantee to recompense the insured in the case of a large, probably devastating loss. The insured accepts an agreement called the insurance policy which particulars the circumstances and situations under which the insured will be remunerated.
- Large number of similar exposure units.
- Definite Loss
- Accidental Loss
- Large Loss
- Affordable Premium
- Calculable Loss
- Limited risk of catastrophically large losses
- Insurable Interest
- Causa Proxima