What is insurance?
Insurance is a form of risk management where risk is transferred from one entity to another in exchange for a paid premium, the fee paid to the insurer for assuming risk. Entities insure things like property or health against loss or harm arising out of specific incidents, such as death, accidents, fire or floods, in return for a payment proportionate to the risk involved. The insurer is usually a company selling insurance and bases its rates on levels of risk and factors contributing to the risk. A party becomes insured based on a contract between the insurer and insured called an insurance policy, and the insured is indemnified against any claims covered by the policy.
Insurance law
Insurance laws are used to regulate the insurance industry and protect consumers and policyholders. The laws cover different aspects of insurance coverage, such as life, health, home and car insurance. Insurance laws protect against excessively high premiums and set standards for contracts and bad faith claims.