A group of farmers agreed that if any farmer suffered a property loss,the loss would be spread over the entire group.In this way,each farmer is responsible for the average loss of the group rather than the actual loss that the farmer sustained.Which characteristic of insurance is embodied in this agreement?

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The characteristic of insurance embodied in this agreement is pooling of losses, where a group of individuals agree to share the risk and potential losses among themselves. In this arrangement, each farmer contributes to a pool of funds that is used to compensate any farmer who suffers a loss, regardless of whether or not they individually experienced a loss.

A Group of Farmers Agreed That If Any Farmer Suffered