Which of the Following Best Defines Insurance? ​

question 9

Multiple Choice

Which of the following best defines insurance? ​

• A)It is a contract whereby a party transfers his right to receive interest to a third-party such as an agent.
• B)It is a contract whereby a party transfers a risk of physical injury to the risk bearer for a fee.
• C)It is a contract whereby a party transfers his right to a claim for a particular fee.
• D)It is a contract whereby a party transfers a risk of financial loss to a risk bearer for a fee.

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Definitions:

Potential

The inherent ability or capacity for growth, development, or coming into being.

Behavior

The actions or reactions of individuals or groups in response to external or internal stimuli.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit individuals or groups.

Personal Interests

Individual hobbies, desires, or activities that a person is passionate about or enjoys in their personal time.