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The insurance industry prides itself on a promise that it makes to every policyholder–to compensate them for their loss within the terms of the contract the parties have agreed to. From the beginnings of insurance to the present, this arrangement–to make the policyholder whole again–has worked well most of the time.

This promise has allowed entrepreneurs to take risks they might have been reluctant to consider otherwise. It has given solace to families who have suffered after the loss of a home, a car or a family member, as well as those with medical problems.

 

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