What is Insurance?

INSURANCE

- form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

- also defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment

INSURER

- company selling the insurance

INSURED

- or policyholder, is the person or entity buying the insurance policy

INSURANCE RATE

- factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium

“Risk 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.” 

~ Wikipedia

TYPES OF INSURANCE

- Auto insurance

- Home insurance

- Health insurance

- Accident, sickness and unemployment insurance

- Casualty

- Life

- Burial insurance

- Property

- Liability

- Credit

- Insurance financing vehicles

- Closed community self-insurance

Auto insurance for car accidents

(Source: Wikipedia)