Answers.com > Wiki Answers > Categories > Business & Finance > Insurance > What is insurance and principles of insurance?

What is insurance and principles of insurance?

In: Insurance [Edit categories]

Answer:

Insurance is the concept that it is better to pool together uncertain risk and spread risk among many in order to better protect against uncertainty.

It is vastly easier to budget for limited loss by mathematical probability that an event will occur to a limited number of people and spreading that risk than it is to prepare for unlimited risk to occur to one person.

First answer by LifePlanningTN. Last edit by LifePlanningTN. Contributor trust: 0 [recommend contributor ]. Question popularity: 5 [recommend question].

[report abuse]

Can you answer these Insurance questions?

	Do you need a drivers license in a state to get auto insurance in that state?	Answer it!
	How many insurances company are there in Connecticut?	Answer it!
	What percent of people have no health insurance?	Answer it!
	What are the Major Health Insurance Corporations in India?	Answer it!
	What is the difference between full coverage auto insurance and comprehensive and collision insurance?	Answer it!

Relevant answers:

Insurance works on the principle?
insurance work on principle of trust........The above is incorrect. They work on the principle of spreading the risk about.
In insurance what is the principle of contribution?
a person can get same subject-matter insured by more than one insurance company. In case of loss he will be, jointly and proportionately, compensated by all insurance companies so that claim amount...
What are the 7 principles in life insurance?
1. buy insurance 2. get into car accident 3.??? 4.profit 5.??? 6.buy more insurance 7.repeat above
Is Alliance insurance a group of insurance companies or an insurance company?
Alliance insurance group is an actual insurance company. They provide many insrance services including auto, life, and mortgage insurance. They are known for their excellent customer service and...
Will insurance pay if it is not your fault and you have no insurance?
If "it" is not your fault then you do not have to pay regardless of insurance. However, you may have to prove in court that "it" is not your fault and although you can counter sue to recover your...