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"To have insurance" generally means that an individual or a business entity has purchased an insurance policy from a licensed insurance entity. Again, in general, an insurance entity is a company that, as its business, assumes the risk of loss of a stated category of risks, from third parties. In return, those parties pay to the insurer a sum of money which is usually referred to as a premium.

Insurance entities have been historically regulated by the States in which they transact insurance business. The primary concern of the State insurance regulator is that the insurer remain financially solvent. That is, the concern is that the insurer have on hand sufficient funds to pay expected losses. This is accomplished in various ways, including ensuring that the insurer charge a sufficient, but not excessive premium for the risk being taken on, and also by regulating the types of investments that the insurer may made.

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12y ago

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