Which of the following is NOT a direct social benefit of the insurance mechanism?
A)increased business and social stability
B)better allocation of society's resources
C)better choice of optimum size of business operations
D)lower federal and state income taxes

Question

Quizplus · Accepted Answer

Lower federal and state income taxes are not a direct social benefit of the insurance mechanism, as insurance primarily focuses on compensating for individual or collective losses and reducing financial risks. While insurance can indirectly contribute to better resource allocation, business stability, and decision-making, its primary objective is to provide financial protection and security to individuals, businesses, and communities. Lowering taxes is not a direct consequence of the existence or function of insurance.

Which of the Following Is NOT a Direct Social Benefit