Principles

Insurance involves the pooling of funds from many insurance companies (as the exposure), pay for the losses that some may be charged. Companies covered by insurance because it depends on the risks to cost, cost that is protected depends on the frequency and seriousness of the events. Insurance, insurance against the risk must meet certain characteristics in order to become insured risk. Insurance is a commercial enterprise and most of the financial industry but also to ensure the individual companies themselves by saving money for possible future losses.

Insurability

Risks insured by private companies typically share seven common characteristics:

1. Large number of similar exposure units: Since insurance works by pooling resources to take advantage of most of the insurance to the members of each major class, the insurance company that provided by the law of large numbers in which the estimated losses associated with the actual loss. The exception is Lloyd's of London, famous for insuring the life or health of actors, athletes and other famous figures. However, all this exposure are some differences that can produce different levels of premium.
2. Definite loss: The loss is incurred at the time known, in one place, and no known cause unknown. The classic example is the death of an insured person on a life insurance policy. Fires, car accidents, injuries and workers can all easily meet this criterion. Another type of loss can be determined only in theory. Working disease, for example,

Legal

If a company guarantees an individual unit, not a legal requirement. Some general principles of insurance include: 

1. Compensation - Insurance indemnity or compensation, the insured losses are

Indemnification

"Indemnity Obligation" means to return all, or, to the position may be restored, that was, if possible, before the occurrence of a specific event or threat. Consequently, life insurance is typically not as liability, but "conditional" insurance (ie a claim on the occurrence of a particular event). There are generally two types of insurance policies that seek to compensate an insured: