Insurance is defined as a financial transaction that occurs after an insurance contract or legal declaration (forsikringsselskap norge) . The insurance company is obliged to periodically compensate a person or another company in exchange for a payment of money. Insurance is paid services that assume the obligation to pay for an item or that is broken or damaged for reasons that are independent of the person who benefits from the insurance.
Terms used in the insurance industry
The insurer is the insurance company or the entity that sells the insurance policies, that is, it assumes responsibility for the damaged goods or other insured services in exchange for a certain amount.
The insured is the person, company or institution that acquires the insurance policy. The insured buy insurance to avoid losses arising from unforeseen events (Forsikringer) . It contracts insurance with the insurer with which it protects certain goods, properties, objects, services or damages that can be caused to other people.
The beneficiary of the insurance is the designated person who can collect the amount of the indemnity or insured sum, without obligation or implication in the contract.
The insurance contract is a legal document through which the legal clauses between interested parties are resolved. This document includes other legal documents such as the insurance application, the insurance policy, and the terms and conditions of the basic insurance contract, as well as other possible contractual clauses.
An insured risk is an unforeseen event that causes certain damages and requires the insurer to pay the insured or the beneficiary the amount of compensation provided in the insurance contract.
Legal issues of compensation and damages.
Compensation or reparation are defined, in legal terms, as a process by which a party that has contracted the insurance receives money for any loss covered by the terms of the contract (Ansvarsforsikring) . Sometimes, an assignment can also be part of a resolution integrated into a program. In this case, the property is exchanged for a sum of money, while compensation is required only by the innocent party. On the other hand, the damages are different due to the law of obligations and should not be confused with compensation.