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The insured receives a contract , referred to as the insurance coverage policy , which details the circumstances and circumstances below which the insurer will compensate the insured. The amount of money charged by the insurer to the policyholder for the protection set forth in the insurance coverage coverage is called the premium. If the insured experiences a loss which is doubtlessly lined by the insurance policy, the insured submits a declare to the insurer for processing by a claims adjuster The insurer could hedge its personal threat by taking out reinsurance , whereby one other insurance firm agrees to carry among the risks, especially if the first insurer deems the risk too massive for it to carry.