Q508
Identify the correct statement
A.
Insurance transfer s risk from one asset to another asset
B.
Losses to assets are sought to be shared by a few only
C.
Gains of a few people are sought to be shared by many in insurance
D.
Losses suffered by a few people are sought to be shared by many in insurance
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Losses suffered by a few people are sought to be shared by many in insurance. Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to insure themselves against that risk.