Question

In the case of death and disability, how does the mechanism of pooling risks work?

a.

By transferring ownership of the individual

b.

By using a common fund

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 Explanation:In the case of death and disability, the mechanism of pooling risks works through a common fund.

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Q. In the case of death and disability, how does the mechanism of pooling risks work?
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