Roma obtains a fire insurance policy on her house with Safe-wise Insurance Company. This policy is an arrangement for

Question

Quizplus · Accepted Answer

A fire insurance policy is a mechanism to transfer and allocate the risk of financial loss due to fire damage from the homeowner (Roma) to the insurance company (Safe-wise). It does not necessarily avoid any assumption of responsibility or predict a potential loss based on unknown factors, but rather establishes a contractual agreement for the insurance company to provide financial compensation in the event of fire damage.

Roma Obtains a Fire Insurance Policy on Her House with Safe-Wise