The primary purpose of insurance is to provide financial protection against potential losses or damages. It allows individuals and organizations to transfer the risk of financial loss to an insurance company in exchange for a premium.

The fundamental principle of insurance is risk sharing. It involves pooling the risks of many individuals or organizations into a common fund, from which claims are paid to those who suffer losses.

Underwriting is the process of assessing and evaluating risks to determine whether to accept or reject an insurance application. It involves analyzing the applicant's risk profile, including factors such as age, health, occupation, and property value.

Premium is the amount of money paid by a policyholder to an insurance company in exchange for coverage. It is typically paid periodically, such as monthly or annually.

Deductible is the amount of money that a policyholder is responsible for paying out of pocket before the insurance coverage takes effect. It is typically a fixed amount specified in the insurance policy.

Coinsurance is the percentage of the claim amount that a policyholder is responsible for paying. It is typically a fixed percentage specified in the insurance policy.

Claims processing is the process of submitting a request for payment under an insurance policy. It involves providing documentation and information to the insurance company to support the claim.

Policy limit is the maximum amount that an insurance company is liable to pay for a claim. It is specified in the insurance policy and varies depending on the type of coverage and policy.

Policy is the legal agreement between an insurance company and a policyholder that outlines the terms and conditions of the insurance coverage, including the rights and responsibilities of both parties.

Endorsement is an amendment to an insurance policy that modifies the terms and conditions of the coverage. It can be used to add or remove coverage, change the policy limits, or update the policyholder's information.

Rider is an additional coverage added to an insurance policy that provides specific benefits or extends the coverage beyond the basic policy terms. It can be used to cover additional risks or provide enhanced protection.

Claim payment is the amount of money paid by an insurance company to a policyholder in settlement of a claim. It is typically determined based on the terms and conditions of the insurance policy and the extent of the loss or damage.

Risk management is the process of managing and controlling risks to minimize their potential impact on an individual or organization. It involves identifying, assessing, and mitigating risks to reduce the likelihood and severity of losses.

Risk transfer is the process of transferring risk from one party to another. It can be done through insurance, hedging, or other financial instruments.

Risk assessment is the process of identifying and evaluating risks to determine their likelihood and potential impact. It involves analyzing various factors that may contribute to a loss or damage.