Q506
Which is correct?
A.
Insurance is a kind of investment
B.
Insurance is nothing but a gamble
C.
Insurance is risk transfer of pooling of similar risks
AnswerD.
Insurance is nothing but a savings scheme
Answer: Option C
Solution
Answer: Option C
Solution:
Insurance is risk transfer of pooling of similar risks. In insurance, the term "risk pooling" refers to the spreading of financial risks evenly among a large number of contributors to the program.