Question

How can insurance help in the event of loss or damage to assets?

a.

By preventing the loss or damage from occurring

b.

By repairing the damaged assets completely

c.

By paying a sum of money to reduce the economic impact of the loss

d.

By replacing the lost assets with new ones

Posted under C02 Core Elements of Insurance IC38 Life Insurance Agent Exam

Answer: (c).By paying a sum of money to reduce the economic impact of the loss Explanation:Insurance can help by paying a sum of money, which would reduce the economic impact of the loss, but it cannot prevent the loss or damage from occurring.

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Q. How can insurance help in the event of loss or damage to assets?
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