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Parental Insurance

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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.

From Wikipedia under the GNU Free Documentation License
Mon May 7 22:16:57 2012


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See also:
  • The USAA Educational FoundationThe USAA Educational Foundation
    usaaedfoundation.org
    Non-profit organization provides consumer information on insurance and related personal and financial topics.
  • Insurance Services NetworkInsurance Services Network
    isn-inc.com
    A directory of insurance companies and information on world wide insurance practices.
  • Insurance InsightsInsurance Insights
    ianrpubs.unl.edu
    This guide defines life insurance, its purpose, who needs it, types of policies and companies, how to choose the right insurance, and offers suggestions for policyholders. Prepared by the University of Nebraska-Lincoln Cooperative Extension. [pdf]

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Mon Jan 9 07:17:17 2012

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