What is insurance?

Answers:3   |   LastUpdateAt:2011-12-07 21:50:24  

Question
auto insurance expert
Asked at 2011-12-07 21:50:24
What is insurance? Why we need insurance?
Answer1auto insurance expertAnswered at 2011-12-07 21:53:14
In law and economics, insurance 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 premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.(from wikipedia)
Answer2 insurance agent Answered at 2011-12-07 21:57:39
Insurance is a promise or guarantee of an insurer by the insured for losses specific potential future in exchange for periodic payments ( premiums). Insurance is designed to protect individuals, organizations, companies , etc against unexpected financial losses . Some forms of insurance are required by law, while others, although very useful, such as life insurance and health care are optional.
Answer3chick run Answered at 2011-12-07 22:03:05
Insurance, in the simplest terms , means you pay a lump sum for leverage or protection against an incident of great magnitude. Therefore, when the unexpected misfortune is, the insurance company may be involved , helping to set sail across the land..
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