Friday, December 28, 2007

THE PURPOSE OF INSURANCE

The purpose of insurance is to provide a sum of money in compensation for any damage that has been suffered as a result of running the risk that we insured against. Every policy of insurance defines the risk that is being insured against, and if that risk causes a loss the person insured will receive compensation to indemnify him for the loss. The meaning of this phrase will be made clear later in this site of mine.

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