The general feature of insurance contracts is that a person facing a risk pays a fee to an insurance company, which in return
A) agrees to accept all or part of the risk.
B) agrees to accept none of the risk.
C) does not agrees to accept any risk.
D) pays out premiums.

Question

Quizplus · Accepted Answer

The general feature of insurance contracts is that a person facing a risk pays a fee (known as a premium) to an insurance company, which agrees to accept all or part of the risk. In return for the premium payment, the insurance company agrees to provide financial compensation in the event that the covered risk occurs.

The General Feature of Insurance Contracts Is That a Person