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Insurance, in law
and economics, is a form of risk management primarily
used to hedge against the risk of 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. |
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