1. The act of insuring, or assuring, against loss or damage by a
contingent event; a contract whereby, for a stipulated consideration,
called premium, one party undertakes to indemnify or guarantee another
against loss by certain specified risks. Cf. Assurance, n., 6.
The person who undertakes to pay in case of loss is termed the insurer;
the danger against which he undertakes, the risk; the person protected,
the insured; the sum which he pays for the protection, the premium; and
the contract itself, when reduced to form, the policy. Johnson's Cyc.