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Darina [25.2K]
3 years ago
5

Insurance is a financial service that allows a

Social Studies
2 answers:
GarryVolchara [31]3 years ago
7 0

Answer:

person to mitigate risks whether they be to their own person, other people and anything they consider their property.

Explanation:

insurance allows for one to be indemnified in case of any risks or liabilities that may occur. in that way, the financial burden that they would suffer if they were otherwise not insured is minimized.

Ahat [919]3 years ago
3 0

Insurance is a financial service that lets a customer to share responsibility with a provider.

<u>Explanation: </u>

Insurance is generally the protection from any kind of financial loss based on the policy the customer is registered with. It is used to hedge against any risk of uncertain or a contingent loss.

The insurance providing company is called as underwriter or insurer and the registered customer is the policy holder or an insured. Here, the insurers get profits in the following two ways:

  • Underwriting
  • Investing the collected premiums

Insurance companies are divided into three groups:

  • Life insurance companies
  • Non-life or property/casualty insurance companies
  • Health insurance companies

General insurance companies are further divided into the following sub categories:

  • Excess lines
  • Standard lines
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