BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The purpose of insurance is to make you financially better off than you were before the event occurred.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Purpose of insurance Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee-an insurance premium-to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.
Detailed explanation-2: -They do not provide security to wealth.
Detailed explanation-3: -Insurance is the contract because it is an agreement where insurer promises to pay benefits to the insured.
Detailed explanation-4: -The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.
There is 1 question to complete.