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All insurance is based on a Principle called?

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Question: All insurance is based on a Principle called?

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  1. Investment premiums
  2. Division of risk
  3. Cash value coverage.
  4. Premium earnings

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2.) Division of Risk

All insurances are based on a Principle called Division of Risk.

Explanation: All insurances are based upon a principle called Division of Risk. This simply means that, if there is a loss to an individual or several individuals, then the loss will be shared by a large number of individuals. The loss will not be an excessive burden on anyone.

All the insurances (or say, insurance companies) work on this simple principle: Division of Risk.

All insurances are based on a Principle called Division of Risk.

List of Best Insurance Companies in USA

  1. Marsh & McLennan
  2. Progressive
  3. MetLife
  4. Travelers
  5. Allstate
  6. Aflac
  7. Prudential Financial
  8. Gallagher
  9. Hartford Insurance
  10. Principal

Source: Top 20 largest US insurance companies - Disfold

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