ABSTRACT
(p. 147) Insurance is an agreement between the insurer (the company), as one party and the person or persons seeking insurance (the insured) as the other party. In accordance with this agreement, the insurer, or first party, undertakes to pay to the insured, or second party, a certain amount of money or the equivalent upon the occurrence of a certain incident as specified in the contract. In return for this, the insured undertakes to pay an amount agreed on by the two parties which is called an ‘insurance premium’.
