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A promise of compensation for specific potential future losses in trade for a periodic payment. Insurance is designed to guard the financial properly-being of an individual, firm or different entity in the case of sudden loss Some forms of insurance coverage are required by regulation, whereas others are optional Agreeing to the phrases of an insurance policy creates a contract between the insured and the insurer In exchange for funds from the insured (called premiums ), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a selected event.
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