, pub-2782336357453463, DIRECT, f08c47fec0942fa0


Individuals and busi­nesses establish plans to protect their personal and financial interests against events that threaten to under­mine their security. This concept is risk manage­ment. The most common method of risk management is the transfer of risk from an individual or a business to an in­surance company. As with other areas of law, the area of insurance has its own special concepts and terminology. It is also pointed out that when a broker deals with an appli­cant for insurance, the broker is, in effect, the applicant’s agent, but that an insurance agent is an agent of the insurer, not an agent of the applicant.