Question

How is the economic loss due to loss or destruction of assets compensated in insurance?

a.

By transferring ownership of the asset

b.

By using a common fund made up of small contributions

c.

By increasing the value of the assets

d.

By selling the assets

Posted under IC38 Life Insurance Agent Exam

Answer: (b).By using a common fund made up of small contributions Explanation:The economic loss is compensated by creating a common fund from small contributions made by many asset owners.

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Q. How is the economic loss due to loss or destruction of assets compensated in insurance?
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