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The insurance contract is the means by which the insurer undertakes, by charging a premium, to compensate for damage or to pay a sum of money to be verified the possibility provided for in the contract. The insurance contract may cover all kinds of risks if insurable interest exists, unless prohibited by law.
The contractor or policyholder, which may or may not coincide with the insured, meanwhile, undertakes to make payment of the premium, in exchange for the cover granted by the insurer, which avoids face you greater economic damage, if the incident occurs.
The insurance contract is consensual; the mutual rights and obligations of the insurer and policyholder, starting since the convention was held even before the issuance of the "policy" or document that reflects details and conditions of the insurance contract.
When making an insurance contract, you try to obtain financial protection of property or persons that may in future damage.
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