Insurance Company Definition By Authors. These points do not clearly distinguish the captive insurer from a mutual insurance company. The instrument containing the terms of the contract is known as a policy.
Insurance — a contractual relationship that exists when one party (the insurer) for a consideration (the premium) agrees to reimburse another party (the insured) for loss to a specified subject (the risk) caused by designated contingencies (hazards or perils). 1 an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Contracts of insurance are uberrimae fidei,.