Question

Which statement accurately defines insurance?

a.

Insurance is a promise given by the insurer that grants protection to the insured against a specific loss under certain conditions.

b.

Insurance contracts are legal contracts designed to meet the customer’s need of a secure financial future.

c.

Only persons of sound mind, majority age and those permitted by law can enter into an insurance contract.

d.

Insurable interest ensures that the proposer does not gain undue financial advantage by effecting a contract of insurance.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Insurance is a promise given by the insurer that grants protection to the insured against a specific loss under certain conditions. Explanation:Statement a accurately defines insurance as a promise given by the insurer to protect the insured against a specific loss under certain conditions.

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Q. Which statement accurately defines insurance?
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