TERMINOLOGIES ON INSURANCE

Insurance: A means of security from damage, loss or penalty against a future occurrence of an uncertain event.


Insurer: One who provides compensation if some specified risk occurs, often agreed by policy(contract) an insurer is also known as insurance company


Insured: One who buys a coverage (insurance policy) from an insurance company, they are also known as policy holders.


Premium: It is the amount paid to the insurer to protect the insured interest.


Hedge: It is a barrier to protect someone or something from harm 


Moral hazard: The prospect in which the party insulated from risk may behave differently from the way it would behave if it were fully exposed to risk


Fraud: An act of deception carried out for the purpose of unlawful gain.


Investment: A state of putting in a capital in expectation of deriving income or profit from its use or appreciation.


Underwriting: Is an agreement to financial responsibility for something and guarantee against its failure

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