Which of the following statements is true of insurance?

Question

Quizplus · Accepted Answer

Insurance is a means of transferring and distributing the risk of loss from one party to another. This is typically done through the payment of premiums to an insurance company, who then agrees to indemnify the insured party for any loss that may occur. It is not necessary to have an insurable interest in the property, but such interest will increase the likelihood of obtaining coverage. Insurance policies can be modified through endorsements or riders.

Which of the Following Statements Is True of Insurance