ABOUT INSURANCE

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain 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. Risk management, the practice of appraising 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 (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Types of insurance :

#Auto insurance 
#Home insurance 

#Health insurance 

#Accident, sickness and unemployment insurance 

#Casualty 

#Life 

#Property 

#Liability

#Credit 

#Insurance financing vehicles 

#Closed community self-insurance

Insurance companies may be classified into two groups : 

#Life insurance companies : which sell life insurance, annuities and pensions products.

#Non-life : property/casualty insurance companies, which sell other types of insurance.

http://en.wikipedia.org/wiki/Insurance_policy