I've always heard of the term insurance and that I should buy insurance if I buy a car.  What does that mean?
Insurance is a way of protection from financial loss. It is there in case you have a wreck.
Why would a company insure me in that manner?  Won't they be out of pocket?  How do they make money from me?
Well, you're going to take a loss. You will pay monthly to guarantee the insurer's promise to compensate you in the event you are in a wreck.
Ah - I see.  So in a way it's a risk management on paying small amounts today to get comfort in the future.  What items can I typically buy insurance on?
Cars, bonds, health, there are many things you can insure.
That sounds interesting - would you know how the monthly payments are calculated?
policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. The insurer may hedge its own risk by taking out reinsurance, whereby another insurance company agrees to carry some of the risk, especially if the primary insurer deems the risk too large for it to carry.
History.
History Early methods.
Methods for transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as
had Medicare negotiating with the drug companies, you would be fixing prices." Novelli said he earned, as the AARP CEO, "...$420,000 a year. I think my salary is very fair." Solomon continued, "Have you invested any of your own money in the health-insurance business?" Novelli responded, "You mean stocks and bonds? My wife manages that. I honestly don't know. I know that we own a lot of mutual funds that buy insurance stocks. It's a