Insurance

In and , insurance is a form of primarily used to against the of a contingent, loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. , the practice of and controlling risk, has evolved as a discrete field of study and practice.

The 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 case of a financial (personal) loss. The insured receives a , called the , which details the conditions and circumstances under which the insured will be financially compensated.