The definition's craft: insurance = the contract whereby the insurer, for the premium's consideration, promises to indemnify the insured (or pay the sum assured) upon the risk's occurrence (the contingent event within the policy's terms). The elements (the exam's anatomy): (i) the contract (the agreement — the offer-acceptance faces of Unit 2); (ii) the insurable interest (the insured's legal relationship to the subject — the gambling's bar: LAW 414-U8's principle); (iii) the risk (the contingency — the uncertain event: the fortuity's requirement); (iv) the premium (the price — the consideration's face); (v) the promise to pay (the insurer's undertaking — the indemnity or the benefit). The statutory faces: the Nepali law's definitions (the Insurance Act's faces — the insurance business's definition; the contract's policy-form requirements); the classical definitions (the textbook's glosses: the "device whereby the losses of the few are distributed among the many" — the pooling's economics; the contractual definition's craft). The legal characters: the insurance as the contract of utmost good faith (uberrimae fidei — the disclosure's special duty: Unit 2's core); the indemnity's principle (the non-life's limit — the profit's bar); the aleatory face (the exchange's uncertainty — the contingency's structure); the personal-contract faces (the insured's identity's significance in some branches).
Exam Focus Long questions: (i) The functions of insurance (the seven-fold list — the banker); (ii) The classification's tree (the life-non-life divide + the branches); (iii) The definition's anatomy (the five elements + the legal characters). Short questions: Lloyd's; the law of large numbers; the indemnity vs benefit distinction; the micro-insurance. Trick areas: (i) The LIFE insurance is a BENEFIT contract (the sum assured — no indemnity limit); the NON-LIFE is an INDEMNITY contract (the loss's compensation only) — the great divide's craft; (ii) The pooling depends on the LARGE NUMBERS — the statistical law, not the luck's sharing; (iii) The insurable interest distinguishes the insurance from the GAMBLING — the legality's anchor; (iv) The Nepal regulatory lineage: Beema Samiti (2049 Act) → Nepal Insurance Authority (2079 Act) — the syllabus's "Insurance Board" being the historical name (Unit 3's honest update).