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Commerce · Q613

Insurance

Graduate and Post Graduate · Commerce · question 613

Q613

Identify the correct statement

A.
Assets are protected by insurance
B.
Insurance prevents loss to assets
C.
Insurance compensates for the loss of the value of assets
Answer
D.
Probabilities of loss are considerably reduced by insurance

Answer: Option C

Solution

Answer: Option C
Solution:
Insurance compensates for the loss of the value of assets. Coverage may also include compensation for being unable to use the item or for other damages caused by the item's loss.