What Is the Foundational Principle That Allows Insurance Companies to Work

question 107

Multiple Choice

What is the foundational principle that allows insurance companies to work?

• A)Risk pooling
• B)Risk assignment
• C)Catastrophic causation
• D)Risk analysis

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Definitions:

Shelf Life

The length of time that a product remains usable, fit for consumption, or salable.

Problem

A situation, question, or condition that presents a challenge or difficulty requiring a solution or answer.

Decision

The process or act of making a choice or judgement among several alternatives.

Purchase Aspect

The considerations and factors that influence a buyer's decision to acquire goods or services.