Insurance Companies Create Wealth by

question 28

Multiple Choice

Insurance companies create wealth by

• A)reducing the amount of risk that the risk averse must bear
• B)reducing the amount of risk that risk lovers must bear
• C)increasing the amount of risk that the risk averse must bear
• D)increasing the amount of risk that risk lovers must bear

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Definitions:

Agency Relationship Law

Agency Relationship Law governs the legal relationship formed between two parties when one, known as the agent, is authorized to act on behalf of the other, known as the principal.

Manager

A manager is an individual responsible for directing and overseeing the work of a group or unit within an organization, making decisions, and ensuring goals are achieved.

Contract

An agreement between two or more parties that is recognized and enforceable by legal systems.

Liability

Refers to the state of being legally responsible for something, typically in the context of debts or legal wrongs.