An insurance policy pays $50,000 immediately or $4,000 every 6 months for 10 years beginning now. What interest rate/2 is being used? You are given: 19/06 "20/05 11.1581 11.24% 10.59% 9.93% 11.77% 19.055 11.6077 12.4622 a 20,045 - 13.0079

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.