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Question: Insurance cannot prevent the occurrence of risk but it provides for the_________

Options:

  1.  Losses of risk
  2.  Occurrence of risk
  3.  Chance of risk
  4.  None of these

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1. Losses of risk

Insurance cannot prevent the occurrence of risk but it provides for the losses of risk.


More info:

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

It helps to reduce the financial consequences during adverse situations.

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