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A Policy is an Insurance if…

» The benefit provided by a particular kind of indemnity contract, called an insurance policy.

» That is issued by one of several kinds of legal entities (stock company, mutual company, reciprocal, or Lloyds organization, for example), any of which may be called an insurer.

» In which the insurer promises to pay on behalf of or to indemnify another party, called a policyholder or insured.

» That protects the insured against loss caused by those perils subject to the indemnity in exchange for consideration known as an insurance premium.

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