MANAGEMENT

Detailed explanation-1: -An insurance policy is a legal contract between the insurance company (the insurer) and the person(s), business, or entity being insured (the insured). Reading your policy helps you verify that the policy meets your needs and that you understand your and the insurance company’s responsibilities if a loss occurs.

Detailed explanation-2: -The Principle of Indemnity The insurer (provider) compensates the insured (policyholder). The insurance company promises to compensate the policyholder for the amount of the loss up to the amount agreed upon in the contract.

Detailed explanation-3: -An insurance contract issued by one insurer (the reinsurer) to compensate another insurer (the cedant) for losses on one or more contracts issued by the cedant. The party that has an obligation under a reinsurance contract to compensate a cedant if an insured event occurs.

Detailed explanation-4: -A document containing terms and conditions of insurance contract is called policy.