Insurance Agency: SECONDARY FUNCTIONS

In addition to the above main functions, the insurance also has the following functions:

DEFINITION OF INSURANCE

The definition of insurance can start from two points: (i) function definition and (ii) contract definition

Functional Definition

Insurance is a cooperative method that spreads the losses caused by a particular risk to many people who have already assumed this responsibility and agreed to take the risk for themselves. Therefore, insurance is (a) a cooperative tool to diversify risks; (b) a system that distributes risks to many people who have insured for that risk; (c) the principle of sharing losses based on the possibility of each member of society losing the risk; (d) ) A method of providing guarantees for the insured’s losses. Similarly, another definition can be given. Insurance is a cooperative means of distributing losses to a large number of individuals or families, each of whom bears nominal expenses and can withstand major losses

Insurance Agency

SECONDARY FUNCTIONS

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A Step by Step Guide To Choosing Your Health Insurance Plan

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