Q695
Which of the following can easily be compensated thro’ insurance?
A.
Primary burden of risk
AnswerB.
Secondary burden of risk
C.
Both A & B
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
Primary burden of risk can easily be compensated thro’ insurance. The primary burden of risk consists of losses that are actually suffered by households (and business units), as a result of pure risk events. These losses are often direct and measurable and can be easily compensated for by insurance.