Que 6: Which of the following statements is true?
Insurance is a method of sharing the losses of a ?few? by ?many?
Insurance is a method of transferring the risk of an individual to another individual
Insurance is a method of sharing the losses of a ?many? by a ?few?
Insurance is a method of transferring the gains of a few to the many
Answers
Answer:
I think statement 2is right that is Insurance is a method of transferring the risk of an individual to another individual.
Insurance is a method of sharing the losses of a few by many
Explanation:
insurance is a contract that is represented by a policy wearing a person or entity gets "financial protection" or 'reimbursement against losses" from the insurance company or the insurer. The insurance company pools the insured (the client) respect to make payments more "affordable" for the insured.
Insurance policy "hedge" against financial losses risk for both big and small types of risk which resource from the damages to the insured or or the insurance property or from liability for injury or damage to a 3rd party.
Tere several types of insurance policy purchase health insurance Life insurance motor insurance medical insurance homeowners insurance among others. The main components in an insurance is the insurance policy the sum insured, the insurance and the insured, and the premium amount