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what is insurance, insurer, insured and purpose of insurance?

Introduction to insurance,insurer,insured and purpose of insurance

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to protect  financial loss against the risk of a contingent, uncertain loss.

what is insurer, insurance company or insurance carrier?

An entity which provides insurance is known as an insurer, insurance company, or insurance carrier.

what is insured or policyholder?

A person or entity who buys insurance is known as insured or policyholder

How insurance policy works?

The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss.

what is insurance, insurer, insured and purpose of insurance?

How insurance policy covers loss?

The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has aninsurable interest established by ownership, possession, or preexisting relationship.

What is insurance policy or insurance contract?

The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. Following are some of the insurance policies:

what is insurance premium?

The amount of money charged by the insured for the coverage set forth in  the insurance policy is called the insurance premium.

What is insurance claim or claim adjuster?

If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claim adjuster also called as insurance claim.

what is the purpose of insurance/benefit of insurance?

The purpose of any insurance, is to provide economic protection against the losses that may be incurred due to chance events listed below :
  • Death
  • Disability
  • Medical Expenses
  • Home or automobile damage, etc.

One party( the insurer), for a set amount of money( insurance premium), agrees to pay the other party (the insured or beneficiary), a sum of money (benefit) upon the occurrence of an event which may or may not occur, during the effective time of the contract, which is called as insurance policy.

Tags: Insurance, Insurance policy, Insurance Premium, Insurer, Insured, Beneficiary, Purpose of Insurance, Insurance claim, Insurance contract, Financial loss, Risk coverage.