Insurance is the termrelated to Law and Economics, which is a form of risk Management that is primarily used against the risj of Uncertain loss.Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is defined as the Company that sells the Life Insurance and an Insured is the Peson who holds the Insurance Policy. The Premium is the Insurance Rate, which is used to determine the amount to be charged for reneing the Insurance Aggrement. Insurane is involing on the priciple of Pooling of Funds from many insured entilities to pay for the Losses occors to feww Peoples. The Insured entilities or the People ho were insured were protected from the Risk, ith the premium is dependent upon the Frequency of the Risks Occuring. In other words, insurance may be defined as the People, were proctected against the risk by by becoming Insured by paying a premium to renew the Insurance aggrement. Thus, if any risk or Damaages occoured to them, the Insures Pays them Compensation from the Premiunm the Pays. The Insurance company gets profit bacause they didn't compensate all the People, because a very few percentage of people ere getting