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The insured receives a contract , referred to as the insurance coverage policy , which details the circumstances and circumstances below which the insurer will compensate the insured. The amount of cash charged by the insurer to the policyholder for the coverage set forth within the insurance coverage policy is called the premium. If the insured experiences a loss which is doubtlessly covered by the insurance coverage coverage, the insured submits a claim to the insurer for processing by a claims adjuster The insurer might hedge its own threat by taking out reinsurance , whereby another insurance coverage firm agrees to hold among the risks, especially if the primary insurer deems the danger too large for it to hold.
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