MANAGEMENT

Detailed explanation-1: -When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a claim against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium.

Detailed explanation-2: -The insurer transfers some or all of an insurance risk to another insurer. The insurer transferring the risk is called the “ceding insurer”. The insurer accepting the risk is called the “assuming insurer” or “reinsurer”.

Detailed explanation-3: -What are insurance premiums? An insurance premium is the amount the policyholder agrees to pay in exchange for coverage. It guarantees financial compensation for the damages or losses they incur, as long as timely payments are made.

Detailed explanation-4: -The Insuring Agreement This is a summary of the major promises of the insurance company and states what is covered. In the Insuring Agreement, the insurer agrees to do certain things such as paying losses for covered perils, providing certain services, or agreeing to defend the insured in a liability lawsuit.

Detailed explanation-5: -Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. Description: In an insurance contract, the risk is transferred from the insured to the insurer.