Page 16 - Life Assurance

/5 Definitions:

Insurance Agent :

A representative of an insurer, whether an
employee or an independent contractor, who
negotiates effects and may service contracts of
insurance.

Insure:

1) To grant an insurance.
2) To obtain an insurance.

Insured:

The person covered by a policy of
insurance.

Insurer:

The party to a contract of insurance who is,
liable to pay claims arising under it.

Remember:

Insurance companies often operate as
transferees of risk instead of utilizing the
combination method, simply because it is
impossible to obtain a sufficiently large number
of exposure units to allow the law of large
numbers to operate.

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