Fundamental of insurance
After studying this chapter, you should be able to
■ Define insurance from a financial and legal perspective.
■ Explain how an insurance system operates.
■ Distinguish among a loss, a hazard, and a peril.
■ Differentiate between social insurance and private insurance.
■ Describe the leading types of insurance in the property-liability and life- health industries.
■ List the components of an insurance premium.
■ Discuss the costs and benefits of the insurance system from society’s standpoint
