Question

What is micro-insurance?

a.

Insurance designed for high-income individuals

b.

Insurance against specific perils for low-income individuals

c.

Insurance exclusively for corporate entities

d.

Insurance for middle-income families

Answer: (b).Insurance against specific perils for low-income individuals Explanation:Micro-insurance refers to the protection of low-income individuals against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved.

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