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Insurance is a policy representing a contract in which an individual or entity receives financial protection from the insurance company against any losses.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.