Insurance, in law
and economics, is a form of risk management primarily used to hedge
against the risk of
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a contingent loss.
Insurance is defined as the equitable transfer of the risk of a potential
loss, from one entity to another, in exchange for a premium. Insurer, in
economics, is the company that sells the insurance. Insurance rate is a
factor used to determine the amount, called the premium, to be charged for
a certain amount of insurance coverage. Risk management, the practice of
appraising and controlling risk, has evolved as a discrete field of study
and practice.
