Question

Which among the following is a method of risk transfer?

a.

Bank Fixed Deposit

b.

Insurance

c.

Equity shares

d.

Real Estate

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Insurance Explanation:Insurance is a method of risk transfer. Insurance involves transferring the responsibility for potential financial losses to an insurance company in exchange for the payment of premiums. If a covered event occurs, the insurance company bears the financial risk associated with it.

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Q. Which among the following is a method of risk transfer?
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