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Question: Insurance helps to

Options:

  1. Prevent adverse situations from occurring
  2. Reduce the financial consequences of adverse situations
  3. Negate all consequences of adverse situations
  4. Make assets continuously productive
  5. All of the above

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2. Reduce the financial consequences of adverse situations

Insurance helps to reduce the financial consequences of adverse situations.


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Insurance works on the principle of Sharing of losses, Probabilities, Large numbers, Randomnes.

It helps to reduce the financial consequences during adverse situations.

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