Definition overview
1 Definition
The equitable transfer of the Risk of a loss from one entity to another in exchange for payment. It is a form of Risk Management primarily used to hedge against the Risk of a contingent, uncertain loss. An Insurer, or Insurance carrier, is a company selling the Insurance. The insured, or policyholder, is the person or entity buying the Insurance policy for a premium.
The insured receives a contract (called the Insurance policy), which details the conditions and circumstances under which the insured will be financially compensated.
2 References
UniSQ Defined.
3 Definition Information
| Approved Date | 24/7/2015 |
| Effective Date | 24/7/2015 |
| Record No | 15/2345PL |