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Insurance law governs the contractual relationship between an insured and an insurer. The contract is called a policy, and the insured is the policyholder. The policy contains an agreement between the insured (such as an individual or a business) and an insurance company that in exchange for the insured's payment of a premium, the insurance company will reimburse the insured for losses associated with covered risks. The insurance policy will state the extent to which a risk is covered and amount of reimbursement the insured may receive in the event of a loss. Insurance policies cover a range of perils: Malp More