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What is insurance?

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Question

What is insurance?

Short Answer
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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 the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on a timely basis to the insurer.

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Chapter 4: Business Services - EXERCISE [Page 93]

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