Editor's note: It's unclear if the House-passed terrorism risk insurance program extension will die in the Senate, where Democrats oppose an amendment that they say will weaken the 2010 Dodd-Frank Wall Street reform law, The Hill reports. TRIA allows the federal government to recoup costs for businesses after a terror attack in which the damage exceeds $100 million. The program is set to expire at the end of the year unless an extension is passed. - Stephanie
US government says 618,548 individuals selected 2015 health plan on Healthcare.gov during the week of Nov. 29 to Dec. 5, of which 48% were consumers who had not previously purchased this insurance - @Reuters
US Treasury Secretary Jack Lew says lawmakers should not delay reauthorization of a federal terrorism insurance program; Republicans and Democrats disagree on whether to include financial reforms - @Reuters
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.