Insurance

Contract by which one party agrees to indemnify another against certain risks to life or property; also sum to be paid by the insurer to the insured in case of lo by fire, shipwreck, or other casualty, on condition of previous periodical payments by the latter. The amount is calculated from the average frequency of lo by the casualties contemplated. In the case of life insurance, the premium or regular payment is a sum which will produce the amount of the insurance if the insured lives the average number of years, in addition to paying ordinary expenses and profits. Insurance against risk also enters in an economic sense into the total cost of production of goods, into ordinary busine profits, into legal pecuniary interest in the person or thing covered by the policy. Representations in the application for the policy are generally declared by the policy to be warranties, in which case their untruth will avoid the contract, without regard to their good faith or materiality; but if they are representations merely, they will not avoid it unle willful or material to the risk. The a ignability of a policy is generally regulated by the agreement of the parties.