Question

What is insurance primarily used for?

a.

Investment purposes

b.

Risk distribution

c.

Saving goods

d.

Increasing wealth

Answer: (b).Risk distribution Explanation:Insurance is fundamentally a method to distribute risk among a group to mitigate the financial impact on any one individual or entity in the event of a loss. This concept is illustrated through the analogy of insurance being a fire extinguisher for the smoldering coal of risk.

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Q. What is insurance primarily used for?

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