Principles
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Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
Read more about this topic: Insurance
Famous quotes containing the word principles:
“To abandon oneself to principles is really to die—and to die for an impossible love which is the contrary of love.”
—Albert Camus (1913–1960)
“... the history of the race, from infancy through its stages of barbarism, heathenism, civilization, and Christianity, is a process of suffering, as the lower principles of humanity are gradually subjected to the higher.”
—Catherine E. Beecher (1800–1878)
“When great changes occur in history, when great principles are involved, as a rule the majority are wrong.”
—Eugene V. Debs (1855–1926)