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

Question

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

Answer 1

1. Losses of risk

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

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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.