In law and economics insurance is a form of risk management primarily used to hedge the risk of loss, property insecure. Is the definition of insurance and loss of equity in the transfer of risk from one entity to another, in exchange for payment. Insurance for the sale of the company and the insured or the insured person or body to purchase insurance. With the added value is a factor in determining the amount of a certain amount of insurance coverage, known as premium. Been developed for risk management, risk assessment and control law, regardless of the theory and practice.
Transactions involving obligations to ensure that insured losses are relatively small and known in the manner of payment of the insurance company, insurance company in exchange for promises of compensation (damages) in case of loss (personal) insured financial. The insured receives the contract, known as an insurance policy, which details the terms and conditions and will provide financial compensation.
