Question

What is the fundamental requirement for insurance to take place?

a.

The presence of physical assets

b.

The existence of a peril

c.

The involvement of an insurer

d.

The asset having economic value

Posted under IC38 Life Insurance Agent Exam

Answer: (d).The asset having economic value Explanation:Insurance requires an asset with economic value to compensate for potential losses.

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Q. What is the fundamental requirement for insurance to take place?
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