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Principles of Insurance - 7 Basic General Insurance Principles - The main objective of every insurance contract is to give financial security and protection to the insured from any future uncertainties. Insured must never ever try to misuse this safe financial cover.

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The cost basis of any investment is the original value of an asset adjusted for stock splits, dividends and capital distributions. It is used to calculate the capital gain or loss on an investment for tax purposes. At the most basic level, the cost basis of an investment is just the total amount invested into the company plus any commissions involved in the purchase.

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