If a person installs an automatic sprinkler system to prevent serious fire damage, this action can be considered "insurance" as defined in the text.

Question

Quizplus · Accepted Answer

Insurance involves transferring the risk of a loss to an insurance company in exchange for payment of a premium, whereas installing an automatic sprinkler system is a risk management technique aimed at preventing or mitigating the risk of fire damage, not transferring the risk.

If a Person Installs an Automatic Sprinkler System to Prevent