State the following statement is True or False:
Through insurance the risk is divided among many people.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A True
Insurance is a form of risk management. It is a substitution of the premium for a risk of large possible loss. Such loss is spread over a large number of policyholders exposed to the same risk.

Suggest Corrections

Similar questions

State True or False. Insurance provides certainty of payment for the risk loss.

dummy - State True or False. Insurance provides certainty of payment for the risk loss.

Join BYJU'S Learning Program