Q337
Which of the following statements is true?
A.
Insurance is a method of sharing the losses of a ‘few’ by ‘many’
AnswerB.
Insurance is a method of transferring the risk of an individual to another individual
C.
Insurance is a method of sharing the losses of a ‘many’ by a few
D.
Insurance is a method of transferring the gains of a few to the many
Answer: Option A
Solution
Answer: Option A
Solution:
Insurance pays when there is loss of asset. Insurance is a method of sharing the losses of a 'few' by 'many'. property to assess the risk for rating purposes.