________ is a social device for eliminating or reducing the loss of society from certain risk.

Question

Question: ________ is a social device for eliminating or reducing the loss of society from certain risk.

Options:

1.  Premium
2.  Policy
3.  Insurance
4.  Contract

Answer 1

3. Insurance

Insurance is a social device for eliminating or reducing the loss of society from certain risk.

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More information:

Insurance is a social device for eliminating or reducing the loss of society from certain risk.

It works on the principle of sharing of losses, probabilities, large numbers to reduce the financial consequences of society during bad situations and losses.