Investors seeking a diversified, professionally managed portfolio of securities can purchase shares of insurance policies.
An insurance policy is a contract between an insurance company and a policyholder that sets out the claims that the insurance company is legally obligated to pay. In exchange for the first payment, called the premium, the insurance company promises to pay for the losses caused by the risks covered by the contract language.
An insurance contract is a legal contract between an insurance company (insurer) and an insured person, company, or entity (insured person). By reading the policy, you can ensure that it meets your needs and that you understand the insurance company's responsibilities in the event of a claim.
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