This booklet is intended to help students gain a broad understanding of the meaning, characteristics, organization, products, and functions of the insurance industry. The following topics are discussed: the concept of and need for insurance; basic principles of insurance (risk assessment, insurability and insurable interest, determination of risk); insurance policies as legal contracts (components and importance of clear contract language); the role of government in insurance (as an insurance regulator and as a program provider); organization and operation in the insurance business (types of insurance organizations, the insurance product system, the structure of insurance operations, other operational structures); insurance careers (major insurance careers and other related careers); and challenges of today's insurance industry (the current scene, health insurance, life insurance, property and casualty insurance, and responses to industry challenges). Each section concludes with a self-quiz. (MN)