ABSTRACT
From the viewpoint of the insurance client, insurance is about a single individual risk-the client’s. In the relatively unlikely event that the client suffers a loss insured by the insurance contract, the insurance company agrees, subject to terms, conditions, and exclusions contained in the contract, to pay the loss. Viewed from the insurance company’s perspective, insurance is a collection of individual risks. This combination of individual risks makes up a pool of risks and clients.
