INSURANCE Meaning and
Definition
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Insurance is a contractual agreement between an individual or entity (the policyholder) and an insurance company in which the policyholder pays regular premiums in exchange for financial protection against potential future losses. It serves as a means of managing and mitigating risk by transferring the potential burden of loss from the policyholder to the insurer.
In more specific terms, insurance is a form of risk management that provides individuals and businesses with financial compensation, known as a claim, in the event of a covered loss or damage. The coverage typically applies to a wide range of risks, including property damage, liability claims, medical expenses, and even death benefits.
The insurance policy, which lays out the terms and conditions of the coverage, outlines the period of coverage, premium amounts, and deductibles. The policyholder is required to pay premiums on a regular basis, and in return, the insurance company agrees to pay out claims based on the coverage provided. This financial protection helps individuals and businesses recover from losses and enables them to bounce back and resume normal operations.
Insurance allows individuals and businesses to transfer potential risks to an insurer, providing both peace of mind and financial security. It is a vital component of any risk management strategy and plays a crucial role in protecting individuals, businesses, and society as a whole from unforeseen events and losses.
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The agreement by one party to pay a definite sum to another party in the event of illness, accident, death, or pecuniary loss of one kind or another.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
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A contract entered into to secure against loss arising from fire, &c., in consideration of a certain annual payment; the premium or money paid for insuring.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for INSURANCE *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for INSURANCE
Etymology of INSURANCE
The word "insurance" has its origins in the Latin word "assurantia" or "securitas", which referred to providing security or protection against loss or danger. This Latin term eventually evolved into Old French "assurance" and Middle English "ensurance". Over time, the word "ensurance" came to be pronounced and spelled as "insurance" in modern English. The concept of insurance itself dates back to ancient times, with various forms of risk-sharing and compensation systems in different civilizations. However, the specific word "insurance" as we know it today can be traced back to its Latin and French roots.
Idioms with the word INSURANCE
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Life Insurance Settlement
A life insurance settlement refers to the process of selling a life insurance policy to a third-party investor or company in exchange for a lump sum cash payment. This option is typically pursued by policyholders in cases where they no longer need or can afford the coverage, or when they require immediate funds for medical bills, long-term care, or other financial needs. The settlement amount is usually less than the death benefit of the policy but provides the policyholder with a financial solution while transferring the policy ownership to the settlement provider.
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Aviation Accident Insurance
Aviation Accident Insurance is a type of insurance coverage specifically designed to provide financial protection in the event of accidents or mishaps involving aircraft. It offers coverage for bodily injury, disability, or death resulting from aviation accidents, including crashes, collisions, or other incidents. This insurance is typically purchased by pilots, aviation operators, or individuals involved in the aviation industry.
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Builders Risk Hull Insurance
The idiom "Builders Risk Hull Insurance" refers to a type of insurance coverage specifically designed to protect marine vessels, such as ships or boats, during the construction or renovation phase. It provides coverage against various risks, including damages caused by accidents, natural disasters, vandalism, or theft, while the vessel is being built, repaired, or converted. This insurance policy typically covers the hull, machinery, equipment, and materials involved in the construction process until the vessel is complete and ready for use.
Similar spelling words for INSURANCE
- Insurgence,
- insurance-company,
- inaccurate,
- life-insurance,
- unsureness,
- inquire,
- ingrained,
- self-insurance,
- insurgent,
- Ingram,
- anseranas,
- insurgency,
- insurance-related,
- Inghram,
- re-insurance,
- insured,
- in series,
- insure,
- ingrate,
- inaccurately,
- inauguration,
- incurable,
- health-insurance,
- in service,
- ingraft,
- social-insurance,
- co-insurance,
- anserines,
- incurrence,
- insurer,
- incurring,
- Insurable,
- ingraining,
- business-insurance,
- inaccuracy,
- ingrain,
- inquiring,
- inaugurally,
- over-insurance,
- inquiringly,
- inquirer,
- anserinus,
- inaugurate,
- Ensurance,
- inquiry,
- auto-insurance,
- inaugural.
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