Insurance in law and ecoonmics is a form of risk manageemnt. Its main use is to hedge (an investmnet that is only taken out to rdeuce or take away the risk of sometihng else) agaisnt the risk of possilbe finacnialloss. Isnurance is dfeined as the equitbale trasnfer of the risk of a loss that could hpapen, from one enitty to aonther, in ecxhange for a prmeium (normally money paid) and duty of care (being caerful).
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