homogeneous exposure units

The vast majority of insurance for the individual members of very large classes. Car insurance, for example, about 175 million cars in the United States in 2004. [2], a large number of homogeneous exposure units, insurers can benefit from the so-called law of large numbers \\ \\ \\ \", which actually states that if the number of exposure units increases, the actual results are increasingly likely to close to the expected results. There are exceptions to this criterion. Lloyds of London is famous for insuring the life or health of actors, film and sports figures. Satellite Launch insurance covers events that are rare. Large property policy to ensure exceptional properties for which there is no \\ \\ 'homogeneous exposure units. It is not the criterion, many exposures like these are considered in the insurance.

What is a Insurance about?

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as an equitable transfer of risk of a loss of one company to another, in exchange for a premium, and can be seen as a guaranteed small loss to prevent a large, potentially devastating losses. An insurer is a company that sells insurance, insured or policyholder is the natural or legal person who buys insurance. The insurance is a factor for determining costs for a number of insurers, the so-called "premium". Risk management practices, assess and control risks, has established itself as a discrete field of study and practice.