Answered

IDNLearn.com makes it easy to find accurate answers to your questions. Our platform is designed to provide accurate and comprehensive answers to any questions you may have.

Question 1: Insurance is NOT characterized as which of the following?

A. Transference of risk
B. Pooling of premium dollars
C. Method of risk management
D. As the number of insureds increases, the number of losses decreases

Sagot :

GinnyAnsweridn

Final answer:

Insurance is a method of spreading risk among policyholders to ensure fairness and stability in insurance markets.


Explanation:

Insurance is characterized by the following:

  • Transference of risk
  • Pooling of premium dollars
  • Method of risk management
  • As the number of insureds increase the number of losses decrease

Insurance works by spreading risk among a group of policyholders, ensuring that the average payments in match the average benefits out over time while also addressing factors like moral hazard and adverse selection in insurance markets to maintain fairness and stability.


Learn more about Insurance here:

https://brainly.com/question/33116677


We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.