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Insurance Companies Collect Premiums in Advance of Loss,and the Funds

Question 34

Multiple Choice

Insurance companies collect premiums in advance of loss,and the funds collected are not needed to pay immediate losses and expenses; these funds can be loaned to businesses.Because of this fact,insurance benefits society by


A) enhancing credit.
B) providing a source of investment funds.
C) indemnifying losses.
D) providing an incentive for loss prevention.

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