The insurance company assumes the financial risk of covering these events in exchange for the premiums paid by the policyholder. There are many different types of insurance,

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What is insurance ?

Insurance is a contract between an individual or entity and an insurance company. The individual or entity agrees to pay a premium, and in exchange, the insurance company agrees to provide financial protection against certain risks or losses.

The purpose of insurance is to provide financial protection against unexpected events or losses. Insurance allows individuals and businesses to transfer the financial risk of such events to the insurance company, in exchange for paying a premium.

Insurance works by transferring the financial risk of unexpected events or losses from individuals or businesses to an insurance company. To obtain insurance, individuals or businesses must pay a premium, which is the cost of the insurance policy.