Question

What is the primary burden of risk in insurance?

a.

It consists of costs and strains due to exposure to loss situations.

b.

It includes the fear and anxiety caused by potential loss events.

c.

It consists of losses actually suffered as a result of pure risk events.

d.

It involves the physical and mental strain of managing reserve funds.

Posted under IC38 Life Insurance Agent Exam

Answer: (c).It consists of losses actually suffered as a result of pure risk events. Explanation:The primary burden of risk in insurance consists of losses actually suffered due to pure risk events.

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Q. What is the primary burden of risk in insurance?
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