INSURANCE

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent loss uncertain. Insurance is defined as the equitable transfer of the risk of loss, from one entity to another, in exchange for payment. An insurer is a company that sells insurance, the insured or the policyholder is the person or entity buying the insurance. 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 risk assessment and control has been developed as a discrete field of study and practice.

The event is accompanied by the insured and guaranteed, assuming a relatively small loss in the known method of payment in exchange for the promise of the insurer for the insurer to replace (replace) the insured event, the economic (personal) loss . The insured may be an agreement, called an insurance policy, which details the conditions and circumstances under which the insured is financial compensation.

Principles

Insurance by combining the resources of many institutions insured (known as exposures) to pay for some of the losses that may arise. Make sure the communities are protected from the risk of payment if the payment depends on the frequency and severity of the accident. To be insurable, a risk to the policyholder must meet certain characteristics to be a risk insurable. Insurance is a commercial enterprise, and most of the financial services sector, but the individual will be able to self-provide through saving money for possible future losses