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Insurance involves pooling funds from many insured entities and pay for the relatively uncommon but devastating losses which occur to these entities .In order to be insurable the risk insured against must meet certain characteristics.Insurance in Los Angeles is a commercial enterprise and a major part of the financial services industry .Insurance sector is a booming sector through out the world .Now a new research is going on micro insurance for the people who are in the bottom of the prymid .Micro insurance would soon attract a huge number of investors and customers around the world .