Q509
Which is incorrect statement out of the following ones?
A.
Risk is not an essential element of insurance
B.
Asset is not an essential element of insurance
C.
Principle of mutuality is not an essential element of insurance
D.
Subsidy is an essential element of insurance
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Subsidy is not an essential element of insurance. The elements of an insurance contract can be called many things, but in the end, you need an offer, an agreement, the objects being insured, the requirements that both parties must meet, and the requirement that each party is legally responsible. These components create a legally binding contract.