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A promise of compensation for particular potential future losses in exchange for a periodic fee. Insurance is designed to protect the monetary properly-being of an individual, company or different entity within the case of unexpected loss Some forms of insurance coverage are required by regulation, while others are non-obligatory Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer In exchange for funds from the insured (called premiums ), the insurer agrees to pay the policy holder a sum of cash upon the occurrence of a particular occasion.
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