Which of the following best defines insurance?
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Which of the following best defines insurance quizlet?
Which of the following best defines insurance? It is a contract whereby a party transfers a risk of financial loss to a risk bearer for a fee.
Which best describes insurance?
Insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursem*nt against losses from an insurance company.
What is the definition of insurance quizlet?
Insurance. Insurance is an agreement in which and individual pays a company to protect him/her from possible loss or damage, can be a property loss or financial loss. *Reimburses you for unexpected losses or damages caused by specific set of hazards such as illness or fire.
Which of the following best describes insurance quizlet?
Which of the following best describes insurance? -to transfer the risk of financial loss from one party to another.
What is known as insurance?
Insurance is a legal agreement between two parties – the insurer and the insured, also known as insurance coverage or insurance policy. The insurer provides financial coverage for the losses of the insured that s/he may bear under certain circ*mstances.
What is insurance considered?
Insurance is a financial safety net, helping you and your loved ones recover after something bad happens — such as a fire, theft, lawsuit or car accident.
What is insurance answers?
It is a contract or agreement under which one party agrees in return for a consideration to pay a specified amount of money to another party to make a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event.
Which definition best describes an insurance premium *?
An insurance premium is the amount of money an individual or business must pay for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance.
Which of the following best describes an insurance deductible?
A deductible is one type of “cost-sharing” feature often included in a health insurance policy. It reflects an initial amount of covered health care expenses that you must pay out of pocket.
Which of the following best defines premium?
Broadly speaking, a premium is a price paid for above and beyond some basic or intrinsic value. Relatedly, it is the price paid for protection from a loss, hazard, or harm (e.g., insurance or options contracts). The word "premium" is derived from the Latin praemium, where it meant "reward" or "prize."
What is the definition of insurance and its functions?
Insurance is defined as a contract, which is called a policy, in which an individual or organisation receives financial protection and reimbursem*nt of damages from the insurer or the insurance company. At a very basic level, it is some form of protection from any possible financial losses.
What is the purpose of insurance?
Purpose of insurance
Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee—an insurance premium—to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.
What is insurance and why is it important?
Insurance is your financial plan's safety net – having the right insurance at the right amount protects you and your family from unforeseen events and provides a baseline financial cushion. Insurance can even be used to diversify your portfolio, add some predictability and reduce your tax burden.
What are the basic principles of insurance?
In insurance, there are 7 basic principles that should be upheld, ie Insurable interest, Utmost good faith, proximate cause, indemnity, subrogation, contribution and loss of minimization.
What is general insurance in simple words?
General insurance is an agreement between a policyholder and insurer wherein the insurance company protects your valuable assets from fire, theft, burglary, or any other unfortunate accident. Often, general insurance is confused with life insurance.
What does insurance mean to you in one word?
: a means of guaranteeing protection or safety.
What is insurance in short form?
There is one common abbreviations of insurance: ins.
What are the most important principles of life insurance?
Basic Principles of Insurance
In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.
What can insurance protect you from answer?
An insurance policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses.
How many types of insurance are there?
Then, we have different types of life insurance, such as term insurance, endowment plans, ULIPs, child insurance plans and more. There are also different types of general insurance, like health insurance, travel insurance, home insurance and motor insurance.
What is the premium of insurance?
An insurance premium is the amount you pay for an insurance policy. Therefore, when you hear “insurance premium," think “insurance price.” You typically pay premiums monthly, semiannually or annually, depending on the policy.
What is insurance in insurance law?
What is Insurance? Insurance is a legal agreement between two parties i.e. the insurance company (insurer) and the individual (insured). In this, the insurance company promises to make good the losses of the insured on happening of the insured contingency. The contingency is the event which causes a loss.
What is insurance and types of insurance?
Insurance is a legal contract between a person and an insurance business in which the insurer promises to provide financial protection (Sum guaranteed) against unforeseen events for a certain price (premium). The many types of insurance plans available today may be grouped into two groups : Life Insurance.
What is the basic definition of premium?
Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium.
