A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the ÒinsurerÓ or Òunderwriter;Ó the other, the ÒinsuredÓ or Òassured;Ó the agreed consideration, the Òpremium;Ó the written contract, a Òpolicy;Ó the events insured against, ÒrisksÓ or Òperils;Ó and the subject, right, or interest to be protected, the Òinsurable interest.Ó 1 Phil. Ins.
