What is a policy a person purchases to prevent having to pay a full settlement in a lawsuit

Tort

Insurance

Premium

Duty

Answer: Insurance

Insurance is a policy a person purchases to prevent having to pay a full settlement in a lawsuit.

Explanation:

Insurance refers to a legal agreement which makes a person to receive financial protection or reimbursement against losses from an insurance company. It is used to guard against risk of financial losses which may result from damage to the insured. It is also purchased to guard or hedge against lawsuit that will result or end in losses.