The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind

Name: The idea that one pays a relatively small known cost for protection against an uncertain and much larger cost is the basic principle behind
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Question

Quizplus · Accepted Answer

Insurance is based on the principle of paying a known, smaller premium to protect against the risk of incurring a much larger, uncertain cost in the future, such as damage from accidents or health issues.

The Idea That One Pays a Relatively Small Known Cost