Risk transfer means:
A) transferring of a pure risk to an entity that pools the risk of loss and provides payment if a loss occurs.
B) shifting the responsibility of bearing the risk from one party to another.
C) losses suffered by a few insured are spread over the entire group so that insurance purchasers substitute the average loss for the uncertainty that they might suffer a large loss.
D) combining pure risk and objective risk.
Correct Answer:
Verified
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