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Explain the following term/concept. Insurance

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Question

Explain the following term/concept.

Insurance

Explain
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Solution

Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against contingent or uncertain losses. Insurance is a contract between the insurer and the insured, under which the insurer agrees to compensate the insured for loss. The insured must pay a fixed sum to the insurer on time.

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Chapter 4: Business Services - EXERCISE [Page 91]

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