The combination of two elements of insurance physically reduces the risk, both in number and in the anxiety it causes.Identify these elements.

Question

Quizplus · Accepted Answer

Risk pooling and risk transfer are two elements of insurance that physically reduce risk. Risk pooling combines multiple individual risks to reduce the overall risk, while risk transfer allows an individual or entity to shift the financial burden of risk to another party, typically an insurance company.

The Combination of Two Elements of Insurance Physically Reduces the Risk