Get the Beginners Guide to Insurance
Insurance is probably one of the most ancient types of contract and is defined as a type of risk control where the prospective risk of an event taking place is passed over to another person or organization who will, for a fee, pay the full cost of replacement for instance, if that event takes place. This type of contract is carried out many thousands of times each day and is the basis of how we now live and survive in our society. A premium is normally paid every month by the insured party to the person accepting the risk which is reckoned by working out the actual likelihood of this event occurring, often within a set period of time.