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Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. Sunday, May 10, 2015. You cant stop calamities but you can minimize their impact on your finances. In some policies, this deductible can be customised. Raise the deductible, and the premium goes down.

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