Insurance is a financial product that helps protect individuals or businesses from financial loss due to unexpected events or risks.
Insurance is typically purchased for protection against risks such as accidents, fires, natural disasters, theft, and medical expenses.
Insurance is typically purchased through an insurance company or broker, who assesses the level of risk and determines the cost of the insurance coverage.
There are different types of insurance available, including life, health, auto, home, and business insurance.
Insurance policies have terms and conditions that outline the coverage provided and the exclusions or limitations of the policy.
Insurance policies typically require payment of a premium, which is a regular payment made to the insurance company to maintain coverage.
Insurance policies may also have a deductible, which is a set amount that must be paid before the insurance company covers the remainder of the loss.
Insurance policies may also have a limit, which is the maximum amount the insurance company will pay out for a covered loss.
Insurance companies use actuaries to determine the likelihood and cost of risks, and to set premiums and deductibles accordingly.
Insurance companies may also offer additional coverages or endorsements for an additional premium, such as flood or earthquake coverage for homeowners.
Insurance claims are made by policyholders when a covered loss occurs, and are reviewed and processed by the insurance company.
Insurance fraud is the intentional misrepresentation of facts or circumstances in order to obtain an insurance payout.
Insurance regulations vary by state, with each state having its own insurance department or commission that oversees insurance companies and policies.
The Affordable Care Act, also known as Obamacare, expanded access to health insurance for millions of Americans and introduced new regulations for the insurance industry.
Insurance has a long history, with the first known insurance contract dating back to ancient Babylon in the 18th century BC.
