: A requirement that the person buying insurance must suffer a financial loss if the insured event occurs.
: The legal principle that insurance should restore the insured to the same financial position they were in prior to a loss, without providing a profit. Dictionary of Insurance Terms
: A measure of profitability for an insurer, calculated by dividing the sum of incurred losses and expenses by earned premiums. : A requirement that the person buying insurance
: A receipt for a premium payment that makes the policy effective from that date, provided the application is later approved. : A receipt for a premium payment that
: The right of an insurer to pursue a third party that caused an insurance loss to the insured. Essential Policy Components
: Coverage primarily concerned with legal liability for injuries to others or damage to their property.