When somebody buys an insurance policy, that person is seeking to transfer risk away from herself and
pass it on to the insurance company.

Question

Quizplus · Accepted Answer

Insurance is a mechanism through which individuals or entities transfer risk to an insurance company in exchange for payment of premiums. By purchasing insurance, the policyholder transfers the risk of a potential loss to the insurance company.

When Somebody Buys an Insurance Policy, That Person Is Seeking