Answer-Insurance is primarily a method of:

Explanation The correct answer is B. Pooling and sharing losses among a group. Insurance works by collecting premiums from a large pool of insured individuals and using these funds to compensate those who suffer covered losses.

Question

Insurance is primarily a method of:

A Avoiding risks altogether

B Pooling and sharing losses among a group

C Maximizing profit from uncertain events

D Preventing unforeseen events

E None of the above

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Insurance is primarily a method of:

Solution