A contract under which an insurance provider (the issuer/ insurance company) accepts significant insurance risks from, and to the benefit of, a policyholder (the insured) to the effect that the issuer stands ready to cover and protect the policyholder if an uncertain future event (the insured event) takes place, adversely affecting the policyholder (in the manner specified in the contract- e.g., its property, life, health, etc.). The compensation (monetary amount of insurance coverage) is paid to the policyholder against payment of the insurance premium (the price of insurance coverage).
October 20, 2023