Q184
Which principle means flow of resources from many to one?
A.
Mutuality or pooling
AnswerB.
Mutuality or cooperation
C.
Pooling or funding
D.
Resourcing or pooling
Answer: Option A
Solution
Answer: Option A
Solution:
Mutuality or pooling principle means flow of resources from many to one. Mutuality is the principle of private, commercial insurance; individuals enter the pool for sharing losses, and pay according to the best estimate of the risk they bring with them.