Insurance

What is Insurance?

Black's Law Dictionary defines INSURANCE as:

A contract by which one party (the insurer) undertakes to indemnify another party (the insured) against risk of loss, damage, or liability arising from the occurrence of some specified contingency, and to defend the insured or to pay for a defense regardless of whether the insured is ultimately found liable.

An insured party pays a premium to the insurer in exchange for the insurer's assumption of the insured's risk.

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