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Commerce · Q85

Insurance

Graduate and Post Graduate · Commerce · question 85

Q85

_________ consists of collecting premiums from numerous individuals to compensate the few who may suffer losses.

A.
Pooling
Answer
B.
Contract
C.
Guarantee
D.
IRDA

Answer: Option A

Solution

Answer: Option A
Solution:
Pooling consists of collecting premiums from numerous individuals to compensate the few who may suffer losses. The pooling of risk is fundamental to the concept of insurance.