A mechanism for reducing financial risk and spreading financial loss due to unexpected events is called insurance.

Name: A mechanism for reducing financial risk and spreading financial loss due to unexpected events is called insurance.
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Question

A mechanism for reducing financial risk and spreading financial loss due to unexpected events is called insurance.​

Quizplus · Accepted Answer

Insurance is a financial product that spreads the risk of unexpected financial loss across many individuals or entities, thereby reducing the financial impact on any single member of the pool when an insured event occurs.

A Mechanism for Reducing Financial Risk and Spreading Financial Loss