Question

What is meant by insurance?

Answer 1

1. A promise to compensate for future losses in exchange for a periodic payment.
2. Insurance protects individuals, businesses, and other entities against financial losses. Certain types of insurance are mandated by law, while others are voluntary.
3. Accepting the terms of an insurance policy forms a contract between the insured and the insurer.
4. The insurer agrees to pay the policyholder a sum of money if a certain event occurs in exchange for premium payments from the insured.