Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium and duty of care.

Principles of insurance

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Losses must be uncertain.

The rate of losses must be relatively predictable: In order to set premiums (prices) insurers must be able to estimate them accurately. This is done using the Law of Large Numbers which states that: The larger the number of homogenous exposures considered, the more closely the losses reported will equal the underlying probability of loss. If the coverage is unique, the insured will pay a correspondingly higher premium. Lloyd's of London often accepts unique coverages. (e.g., the insuring of Tina Turner's legs and Jennifer Lopez's buttocks)

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Flash: "Business leaders' opposition to public health insurance option takes chutzpah" http://tinyurl.com/ydsyuqy
World0verviews (World News) Sun, 01 Nov 2009 06:37:15 -0000
Flash: "Business leaders' opposition to public health insurance option takes chutzpah" http://tinyurl.com/ydsyuqy
New post, 5 Facts You May Not Know About Auto Insurance - http://ping.fm/3kp83
reneperez9 (rene perez) Sun, 01 Nov 2009 06:36:51 -0000
New post, 5 Facts You May Not Know About Auto Insurance - http://ping.fm/3kp83
Lagi mikirin project MSIG Insurance Group..
Ammar1403 (Ammar Maarif) Sun, 01 Nov 2009 06:36:48 -0000
Lagi mikirin project MSIG Insurance Group..
If Someone Has Two Health Insurance Coverage, How Does Coordination Of Benefits Work? - http://tinyurl.com/yz25xqg
anan74 (anan) Sun, 01 Nov 2009 06:36:19 -0000
If Someone Has Two Health Insurance Coverage, How Does Coordination Of Benefits Work? - http://tinyurl.com/yz25xqg
New post, Ways to Save Money on Your Health Insurance Coverage - http://ping.fm/wAD5J
reneperez9 (rene perez) Sun, 01 Nov 2009 06:35:51 -0000
New post, Ways to Save Money on Your Health Insurance Coverage - http://ping.fm/wAD5J
Max NewYork Life Insurance's ad..nice blend with tagline but does it really talk anything about their product? http://tinyurl.com/ycpkqpn
skrishnan83 (Krishnan) Sun, 01 Nov 2009 06:35:03 -0000
Max NewYork Life Insurance's ad..nice blend with tagline but does it really talk anything about their product? http://tinyurl.com/ycpkqpn

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