Principles
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Insurance involves pooling funds from many insured entities (known as exposures) to pay for the losses that some may incur. The insured entities are therefore protected from risk for a fee, with the fee being dependent upon the frequency and severity of the event occurring. In order to be insurable, the risk insured against must meet certain characteristics in order to be an insurable risk. Insurance is a commercial enterprise and a major part of the financial services industry, but individual entities can also self-insure through saving money for possible future losses.
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Famous quotes containing the word principles:
“Language is a process of free creation; its laws and principles are fixed, but the manner in which the principles of generation are used is free and infinitely varied. Even the interpretation and use of words involves a process of free creation.”
—Noam Chomsky (b. 1928)
“Amidst the downward tendency and proneness of things, when every voice is raised for a new road or another statute or a subscription of stock; for an improvement in dress, or in dentistry; for a new house or a larger business; for a political party, or the division of an estate;Mwill you not tolerate one or two solitary voices in the land, speaking for thoughts and principles not marketable or perishable?”
—Ralph Waldo Emerson (1803–1882)
“In child rearing it would unquestionably be easier if a child were to do something because we say so. The authoritarian method does expedite things, but it does not produce independent functioning. If a child has not mastered the underlying principles of human interactions and merely conforms out of coercion or conditioning, he has no tools to use, no resources to apply in the next situation that confronts him.”
—Elaine Heffner (20th century)