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definition ~insurances

                  A promise of compensation for specific potencial future losses  in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, companyor other entity in the case of unexpected loss. 

                  Some forms of insurance are required by law, while others are optional. Agreeing to the termsof an insurance policy  creates a contract between the insured and the  insurer. In exchange for payments from the insured (called premiums), the insurer agrees  to pay  the policy holder  a sum of money  upon the occurrence of a specific event.  

                    In most cases, the policy holder pays part of the loss (called thedeductible), and the insurer pays the rest. Examples include car insurance, health insurance,disability insurance, life insurance, and business insurance.