"Insurance is one of the great inventions of all time. It compares in importance with the invention of the wheel." —Andrew J. Galambos SYNOPSIS Insurance is one of the most important social institutions ever created by human beings. It is also a social tool that can be expanded to provide far better than the political state all the functions that people commonly believe are uniquely suitable only to a political state. These include protection of life and all other forms of property from criminal attack, both domestic and foreign; and protection from losses due to exceptionally destructive natural phenomena. The invention of insurance compares in importance with the invention of the wheel because insurance is the most effective way to prevent loss and thereby protect property. Loss prevention is an already existing and emerging element of virtually every form of insurance. However, if a loss does occur, insurance will compensate for the associated financial damages. Insurance evolved in