Insurance, in the simplest terms to describe it, is risk management. It refers to the transfer or compensation of loss in the form of money by an entity, in exchange for a periodical premium that had been paid. Therefore, an insurer is the company who sells the insurance, they may also be known as the Insurance Company. On the other hand a person who buys the insurance, that is, agrees to pay a periodical premium to the insurer in exchange for a guarantee of being compensated for loss if the need arises, is known as the insured or also as the policy holder. The premium charged depends on the Insurance rate of the particular Insurance Company. Claims, finally, is the utility of the insurance. It is in fact hoped by both the insurer and the insured alike that the claim never materializes, that the loss to be compensated for never occurs. Continue reading →