Crossword Dictionary

What's The Definition Of Insurance?

\In*sur"ance\, n. [From {Insure}.] 1. The act of insuring, or assuring, against loss or damage by a contingent event; a contract whereby, for a stipulated consideration, called premium, one party undertakes to indemnify or guarantee another against loss by certain specified risks. Cf. {Assurance}, n., 6. Note: The person who undertakes to pay in case of loss is termed the insurer; the danger against which he undertakes, the risk; the person protected, the insured; the sum which he pays for the protection, the premium; and the contract itself, when reduced to form, the policy. --Johnson's Cyc. 2. The premium paid for insuring property or life. 3. The sum for which life or property is insured. 4. A guaranty, security, or pledge; assurance. [Obs.] The most acceptable insurance of the divine protection. --Mickle. {Accident insurance}, insurance against pecuniary loss by reason of accident to the person. {Endowment insurance} or {assurance}, a combination of life insurance and investment such that if the person upon whose life a risk is taken dies before a certain specified time the insurance becomes due at once, and if he survives, it becomes due at the time specified. {Fire insurance}. See under {Fire}. {Insurance broker}, a broker or agent who effects insurance. {Insurance company}, a company or corporation whose business it is to insure against loss, damage, or death. {Insurance policy}, a certificate of insurance; the document containing the contract made by an insurance company with a person whose property or life is insured. {Life insurance}. See under {Life}.