Vidyalelo
Commerce · Q88

Insurance

Graduate and Post Graduate · Commerce · question 88

Q88

Cost of the risk would _________ with the probability and amount of loss

A.
Increase
Answer
B.
Decrease
C.
Vary
D.
None of the above

Answer: Option A

Solution

Answer: Option A
Solution:
Cost of the risk would increase with the probability and amount of loss. Hazard is a condition that increases the chances of a loss arising from a peril. For example, an accident may be the cause of a permanent and total disability.