The insurance company assumes the financial risk of covering these events in exchange for the premiums paid by the policyholder. There are many different types of insurance,
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What is insurance ?
Insurance is a contract between an individual or an organization (the policyholder) and an insurance company, where the policyholder pays a premium in exchange for protection..
What is the purpose of insurance ?
The purpose of insurance is to protect individuals, businesses, and other entities from financial losses due to unexpected events or accidents. Insurance provides a way to transfer the risk of loss..
How does insurance work ?
Insurance works by pooling together the risks of many individuals or organizations and distributing the financial costs of unexpected losses among the members of the pool. Insurance companies..