October 11, 2024

alainalexanianconsulting

Leggo My Finance

What Is Insurance? Definition And Meaning

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Definite loss: The loss takes place at a known time, in a identified place, and from a known cause. The classic instance is the death of an insured individual on a life insurance coverage coverage. Fireplace , car accidents , and employee injuries could all simply meet this criterion. Different kinds of losses could solely be definite in theory. Occupational disease , as an illustration, may involve prolonged publicity to injurious situations the place no specific time, place, or trigger is identifiable. Ideally, the time, place, and cause of a loss needs to be clear enough that a reasonable individual, with enough data, may objectively confirm all three components.

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